First-Time Home Buyers’ GST/HST Rebate in Canada: How to Save on a New Home (2026)

The CRA is now accepting applications for the First-Time Home Buyers’ GST/HST Rebate. Learn who may qualify, how to apply, key deadlines, and how buyers of new homes in Canada may save up to $50,000.

What Is the First-Time Home Buyers’ GST/HST Rebate?

This rebate may apply to:

• newly constructed homes

• substantially renovated homes

• owner-built homes

• homes built for personal use

In practical terms, the rebate may provide a full or partial refund of:

• the GST, or

• the federal portion of the HST

For many first-time buyers, this can create a meaningful reduction in total acquisition costs.

Who This May Apply To

This rebate may be relevant if you are a first-time home buyer who is:

• purchasing a new home from a builder

• purchasing a substantially renovated home

• hiring a builder to construct your home

• building your own home for personal occupancy

This makes the program particularly important for buyers exploring:

• pre-construction condominiums

• new freehold homes

• newly completed inventory homes

• custom-built residences

Key Application Deadline

Timing is critical.

According to the article, there is generally a deadline to apply for the rebate, which is usually:

• within two years of taking ownership, or

• within two years of completing construction

Because missed deadlines can affect eligibility, buyers should review the timeline carefully and keep organized records from the beginning of the transaction.

Expectations*:

• Buyers of new homes under $1 million may recover the full GST paid, up to $50,000.

• Homes between $1 million and $1.5 million may still qualify, but the rebate is reduced gradually.

• Properties at $1.5 million and above are not eligible for the rebate.

Compared to the old program, this is a much more meaningful tax incentive for today’s housing market. The rebate is available for qualifying first-time buyers with agreements signed from March 20, 2025 to before 2031.

*Resale homes are excluded, and the rebate is aimed specifically at new housing purchases.

To apply:

https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/gst-hst-rebates/first-time-home-buyers-gst-hst-rebate/how-apply.html

Source: https://www.canada.ca/en/revenue-agency/news/newsroom/tax-tips/tax-tips-2026/first-time-buyers-can-save-more-on-new-homes-the-first-time-home-buyers-gst-hst-rebate-is-available-now.html