The federal government has a new rebate for first-time home buyers that eliminates or reduces the GST or HST paid for a home.
You could get up to $50,000 from this new rebate if you’re approved!
Canada Revenue Agency (CRA) just announced that it’s now accepting applications for the new first-time home buyers’ GST/HST rebate.
This rebate from the federal government is meant to help make homes “more affordable” in Canada.
It provides eligible first-time home buyers with a full or partial rebate of the GST or the federal part of the HST on newly constructed or substantially renovated homes.
The starting date for the new rebate is March 20, 2025, which means you can apply even if you bought or substantially renovated a home last year.
For new homes valued at or below $1 million, the rebate is up to 100% of the maximum of $50,000.
If your new home is valued between $1 million and $1.5 million, the maximum rebate is gradually reduced.
There is no FTHB GST/HST rebate for homes valued at or above $1.5 million.
Generally, to be considered a first-time home buyer, you must meet the following criteria on a specific date (which depends on whether you bought your home from a builder or built it yourself):
- you are at least 18 years of age
- you are a Canadian citizen or a permanent resident of Canada
- you haven’t lived in a home that you or your spouse or common-law partner owned, or jointly owned, whether in or outside of Canada, as your primary place of residence at any time in the calendar year or in the previous four calendar years
- neither you nor your spouse or common-law partner has previously received an FTHB GST/HST rebate
There is a time limit to apply for the FTHB GST/HST rebate, usually within two years of taking ownership or finishing construction, so you should make sure to apply within that period.
It’s expected that the CRA will begin processing rebate applications in the spring of 2026.
All claims are subject to audit, which means there could be a delay of up to six months before you receive your payment.
Builders are now able to credit the FTHB GST/HST rebate when ownership of the home is transferred to you. So, the rebate amount would be credited against the total amount payable for your home.
Since builders couldn’t credit the rebate before Royal Assent, some eligible first-time home buyers can apply directly with the CRA to receive the FTHB GST/HST rebate.
You can apply online using your CRA account or by mailing in a completed Form GST190, GST/HST New Housing Rebate Application for Houses Purchased from a Builder.
If you built your own home and started construction on or after March 20, 2025, you can apply for the FTHB GST/HST rebate directly with the CRA online or by mailing in the completed form.
The CRA said you could be eligible for the FTHB GST/HST rebate and the existing GST/HST new housing rebate. If both rebates apply to you, the FTHB GST/HST rebate will be a top-up to the existing GST/HST new housing rebate.
This article’s cover image was used for illustrative purposes only.
