2026: First-time Home Buyer (FTHB) GST/HST Rebate

Three tiers based on the home's fair market value:

The middle tier is linear. A $1.25M home is roughly 50% of the way through the phase-out range, so the rebate is roughly 50% of the max — about $25,000. A $1.4M home is roughly 80% of the way through, so the rebate is about $10,000.

The federal CRA confirms the rebate amount when you file. Don't budget down to the last dollar — leave a small buffer.

The CRA's definition is stricter than most people assume. You need all of these:

• 18 or older at the time you take possession.
• Canadian citizen or permanent resident.
• You have not lived in a home — anywhere in the world — that you or your spouse/common-law partner owned and that was your primary residence at any time in:
  • the current calendar year, OR
  • any of the previous four calendar years
• You have never previously claimed an FTHB GST/HST rebate.

Important wrinkle: it says "anywhere in the world." That four-year look-back applies to property you owned and lived in outside Canada too. Newcomers who owned and lived in homes in their country of origin within the look-back window don't qualify.

Another wrinkle: if you're buying with a spouse who owned a home recently, you both lose eligibility — even if you personally have never owned. The spouse's ownership history disqualifies the household.

The rebate applies to two paths: buying a new home from a builder or building (or substantially renovating) your own.

If you're buying from a builder:

• Purchase agreement signed on or after March 20, 2025
• Agreement signed before 2031
• Construction substantially completed before 2036
• The home must be your primary place of residence
• You must be the first person to occupy the home

If you're building (or substantially renovating):

• Construction starts on or after March 20, 2025
• Construction starts before 2031
• Construction substantially completed before 2036
• "Substantial renovation" means at least 90% of the interior is removed/replaced — minor reno doesn't count

Eligible property types: detached, semi-detached, townhouse, condominium unit, duplex, mobile/modular home, floating home, and shares in a co-op housing corporation. Purchases for investment or rental purposes don't qualify — the rebate is for primary residences only.

This is the part most buyers miss. The FTHB rebate is in addition to, not instead of, the existing GST/HST New Housing Rebate.

The existing rebate has been around since the GST/HST started. It refunds part of the federal tax on new homes up to $450,000 (with a partial reduction up to about $522,500, then nothing above that). For most Toronto buyers, the existing rebate alone was rarely worth much because new builds here typically exceed $450,000.

The FTHB rebate fills the gap the existing rebate left behind for first-time buyers of moderate-to-higher-priced new homes. The two rebates work together:

• If you qualify for both, the FTHB rebate tops up the existing rebate to the maximum.
• If you only qualify for the existing one (you're not a first-time buyer), you only get what the existing rebate gives.
• The combined amount is capped at $50,000.

In Ontario, there's also a separate Ontario New Housing Rebate for the provincial 8% portion of HST — that one is unrelated to the FTHB rebate and is available regardless of first-time-buyer status. Up to $24,000 back on the provincial portion, depending on the home's value.

Separate from the federal FTHB GST/HST rebate, the Ontario government tabled the 2026 Ontario budget on March 26, 2026. The budget proposed an additional Ontario-specific first-time home buyers' rebate as part of temporary relief measures.

Details are still being finalized as of mid-2026. The province said more information will be released as the program rolls out. The proposed Ontario rebate would sit alongside the federal FTHB rebate, potentially providing another layer of savings.

There are two paths to receiving the rebate, depending on what your purchase agreement says:

Path 1 — The builder credits the rebate to you at closing.

This is the cleanest path. The builder reduces your purchase price by the rebate amount, and the builder later collects the rebate from the CRA. You pay less at closing, no CRA paperwork yourself.

Most large Toronto builders offer this on new condo and townhome purchases. Confirm in writing in your purchase agreement.

Path 2 — You pay full tax and file for the rebate yourself.

You file Form GST190 (for builder-purchased homes) or Form GST191 with worksheet GST191-WS (for owner-built). You generally have two years from possession (or from substantial completion of construction, for owner-built) to file.

Documentation you'll need: purchase agreement, statement of adjustments, builder invoices, proof of occupancy, GST/HST receipts.

• Spouse ownership disqualifies the household. If your spouse owned and lived in a home within the 4-year window, neither of you can claim — even if your name was never on title.
• Newcomers should check the look-back carefully. A home you owned and lived in outside Canada counts. Documents may need to be provided to the CRA.
• "Investment" or "rental" purchases don't qualify. The home has to be your primary residence and you have to be the first person to occupy it.
• The $1.5M ceiling is hard. Even $1,500,001 gets you zero. A small price negotiation on a borderline-priced home can be worth tens of thousands.
• Builder assignments are tricky. If you bought from a builder and assigned your contract to someone else, the rules around who gets the rebate get complicated. Get legal advice before assigning.
• You can only use it once. If you're a first-time buyer planning to move again in five years, the rebate is most valuable on this purchase.