First-Time Buyers Can Save More on New Homes: What You Need to Know About Canada’s New GST/HST Rebate

Buying your first home just got a little more affordable. As of March 2026, the Canada Revenue Agency (CRA) is officially accepting applications for the new First-Time Home Buyers’ (FTHB) GST/HST rebate—an initiative designed to ease the financial burden of entering the housing market.

What Is the FTHB GST/HST Rebate?

The FTHB GST/HST rebate is designed for eligible individuals who are buying, building, or substantially renovating their first home.

To qualify, the home must be:

• Newly built or substantially renovated

• Intended for use as your primary place of residence

Depending on the value of the home, you may be able to recover up to 100% of the GST (or the federal portion of the HST) paid—up to a maximum rebate of $50,000.

How Much Can You Get Back?

The amount of the rebate depends on the purchase price of your home:

• Homes valued at $1 million or less:
  Eligible for up to 100% of the GST/HST (maximum $50,000)

• Homes valued between $1 million and $1.5 million:
  The rebate is gradually reduced

• Homes valued at $1.5 million or more:
  No rebate is available

Who Can Apply?

To qualify as a first-time home buyer, you must meet all of the following criteria:

• You are at least 18 years of age

• You are a Canadian citizen or permanent resident

• You have not lived in a home that you—or your spouse or common-law partner—owned (inside or outside Canada) as your primary residence in the current calendar year or any of the previous four calendar years

Additionally, neither you nor your spouse or common-law partner can have previously received an FTHB GST/HST rebate.

Timing Matters

You must meet the first-time home buyer criteria on a specific date, depending on how the home was acquired:

• If you purchased a home from a builder:
  You must qualify on the date ownership is transferred.

• If you purchased a home and lease the land from a builder:
  You must qualify on the date possession is transferred.

• If you built or substantially renovated your own home:
  You must qualify on whichever comes first:

• When you first occupy the home as your residence

• When construction or renovation is substantially completed

• If you purchased shares in a co-operative housing corporation (co-op):
  You must qualify on the date ownership of the shares is transferred.

Who Can Benefit?

Whether you’re buying a newly built home, purchasing a substantially renovated property, or building your own from the ground up, this rebate is designed to support different paths to homeownership.

How to Apply

The application process depends on how you acquired your home:

• Buying from a builder:
  In many cases, the builder can apply the rebate directly at closing, reducing the amount you owe upfront. If not, you can apply yourself through your CRA account or by submitting the appropriate form.

• Building your own home:
  If construction began on or after March 20, 2025, you can apply directly to the CRA once your home is complete.

Don’t Miss the Deadline

You generally have two years from the date you take ownership or complete construction to apply. Missing this deadline could mean losing out on significant savings.

A Note for Builders

Builders play an important role in making this benefit accessible. By informing buyers and applying the rebate at closing, they can help reduce upfront costs and simplify the process.

Why It Matters

With housing affordability remaining a major concern across Canada, this rebate is a meaningful step toward making homeownership more attainable. For first-time buyers, it offers a valuable opportunity to recover some of the taxes paid and put that money toward settling into a new home.