April 4th, 2026: The federal government’s new GST rebate for first-time home buyers is now officially in effect following Royal Assent of Bill C-4 on March 12, 2026. The Canada Revenue Agency (CRA) can now begin processing rebate claims.
Here’s a quick breakdown of what you need to know:
What is the FTHB GST Rebate?
The First-Time Home Buyer (FTHB) GST/HST Rebate is designed to reduce the upfront cost of purchasing or building a new home. It applies to individuals who:
- Purchase a new home from a builder
- Build or substantially renovate a home (or hire someone to do so)
- Purchase shares in a co-operative housing corporation
The program closely mirrors the existing GST/HST New Housing Rebate but is specifically tailored for first-time buyers.
Note: First-time buyers may be eligible for both the existing GST/HST new housing rebate and the FTHB GST/HST rebate. When both apply, the FTHB rebate acts as a top-up.
Key Benefits:
- Up to 100% of the GST (or federal portion of HST), to a maximum of $50,000, on homes priced up to $1 million
- Gradual phase-out for homes priced between $1 million and $1.5 million
- No rebate available for homes priced at $1.5 million or higher
Who qualifies as a first-time home buyer?
To be eligible, you must:
- Be at least 18 years old
- Be a Canadian citizen or permanent resident
- Not have lived in a home that you (or your spouse/common-law partner) owned in the current year or the previous four calendar years
Note: This rebate is not available to corporations or partnerships.
Eligibility Timeline:
The rebate applies if:
- The agreement of purchase and sale is entered into after March 19, 2025 (and before 2031), or
- Construction or substantial renovation begins before 2031 and is substantially completed before 2036
Eligible buyers typically have two years from possession or completion to submit their claim.
Note: Processing for certain applications (specifically those tied to purchase agreements between March 20, 2025 and May 26, 2025) will begin once CRA system updates are complete.
Important Considerations:
Eligibility can be impacted by factors such as ownership history, transaction structure, and individual buyer circumstances.
Summary:
This rebate is a meaningful step toward improving affordability for first-time buyers and could create new opportunities in the new construction space. Staying informed will help ensure clients fully benefit from what’s available.
Give your Mortgage Professional a Call Today
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