If you’re a first-time home buyer looking to break into the market, there’s good news: the federal government’s newly enhanced GST/HST rebate could put thousands of dollars back in your pocket.
In response to industry advocacy and public demand, the Government of Canada has introduced legislation proposing a new GST/HST rebate for first-time home buyers (FTHB)—a move aimed at stimulating new construction and easing the path to ownership.
This rebate complements the existing GST/HST New Housing Rebate, offering additional financial relief to qualified buyers.
Why it matters
According to a recent Abacus Data report, 88% of Canadians are worried about housing affordability, with 89% believing homeownership is becoming increasingly out of reach. More importantly, 74% of young families with children that do not own a home, have expressed a strong desire to eventually become homeowners one day.
Rebate highlights
- Full rebate: 100% of the GST (or the federal portion of HST) on new homes priced up to $1 million (up to $50,000 in savings).
- Partial rebate: Applies to homes priced between $1 million and $1.5 million. Partial Rebate
- Homes priced at $1.5 million or more are ineligible.
Who’s eligible?
- Buyers must qualify for the existing GST/HST New Housing Rebate.
- Purchase agreements must be signed between May 27, 2025, and 2031, with ownership transferred by 2036.
- The home must be newly built or substantially renovated, with construction starting before 2031 and completed by 2036.
- For owner-built homes, construction must begin on or after May 27, 2025, and occupancy must occur before 2036.
- At least one buyer must be a first-time homebuyer and the first occupant of the home.
- A full list of eligibility requirements is available via the Government of Canada.
.
Sourced from:
Canadian Real Estate Association. “Potential Savings for First-Time Home Buyers: The New FTHB GST/HST Rebate.” CREA Café, 6 Aug. 2025, https://www.crea.ca/cafe/potential-savings-for-first-time-home-buyers-the-new-fthb-gst-hst-rebate/.
