First-Time Homebuyer's GST Rebate

Big News for First-Time Buyers: A Major GST/HST Rebate Is Coming

If you’re a first-time home buyer thinking about purchasing a newly built (or substantially renovated) home, Ottawa just floated a major incentive that could put real money back in your pocket.

As part of the Fall 2025 Budget, the federal government introduced a proposed First-Time Home Buyers’ GST/HST Rebate. And while it’s not officially law yet, this could become one of the biggest financial boosts for first-time buyers in years.

Here’s the short version:

What’s Being Proposed

Full Rebate

Up to $50,000 on homes valued up to $1 million

Reduced Rebate

On homes $1M to $1.5M

No Rebate

Homes above $1.5M

For a $1M new home, the savings could reach $50,000, effectively reducing your tax burden or freeing up cash for your down payment, closing costs or upgrades.

And yes, this proposed rebate would stack on top of the existing GST/HST New Housing Rebate, acting as a “top-up” where both apply.

Who May Be Eligible

You’re a first-time homebuyer

You’re at least 18
You’re a Canadian citizen or permanent resident
You (or your spouse/partner) did not live in a home you owned in:
The current calendar year, or
The previous four calendar years
You have never previously claimed the FTHB GST/HST rebate

You’re buying or building a home

Purchased a newly built or substantially renovated home from a builder
Bought into a new or substantially renovated co-op
Built or substantially renovated a home yourself (or hired someone to do it)
Plan to use the home as your primary residence

first-time homebuyer's GST rebate what it means for buyers in the GTA

Not Available Yet, But Here’s What to Expect

The rebate cannot be applied for yet. The CRA will only process applications once the legislation becomes law.

If your new-build home closes before the legislation is in effect:

You’ll pay the GST/HST upfront
You can apply for the rebate later (once available)

Builders cannot credit this proposed rebate on your purchase until the law officially passes.

Need help understanding the first-time homebuyer’s grants and rebates? 💬 Book a First-Time Buyer Strategy Call

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First-Time Homebuyer’s GST Rebate