Just in time for the spring home buying season, the federal government's first-time buyers’ GST/HST rebate program is now active.
The Canada Revenue Agency (CRA) is now accepting applications for the rebate, which is applied to the 5% GST or federal portion of the HST on qualifying properties.
The program gives up to $50,000 back to eligible buyers on newly-built homes priced at or below $1 million. New homes priced between $1 million and $1.5 million also qualify for a smaller rebate, with no rebate above that threshold, however substantially renovated homes do qualify for a rebate.
First-time buyers who purchased from a builder could also have the rebate credited at closing, with the amount applied against the final purchase price, similar to the long‑standing GST/HST new housing rebate.
When the program was announced, the federal Parliamentary Budget Officer suggested average savings approximately in the mid‑$20,000 range for typical first-time buyers, dependent on price and financing arrangements, well short of new home prices, but a helping hand to get people into ownership.
First-time buyers are an essential element of healthy housing markets, but in recent years high prices and limited supply of homes have kept most of these markets on the sidelines.
First-time buyers already navigate a patchwork of federal supports, from the long‑running GST/HST new housing rebate to RRSP withdrawals under the Home Buyers’ Plan, even as Ottawa’s own budget watchdog warned that new housing initiatives would close only a fraction of the supply gap.
Housing experts and economists say the rebate has the potential to lead buyers into the new home market.
Kari Norman, an economist with Desjardins Group, says the rebate could have a positive impact on the new home building industry with up to 71,700 new homes expected to qualify for the rebate between May 27 2026 to 2031, the window of the program.
Applicants must be at least 18 years old, Canadian citizens or permanent residents, and neither they nor their spouse or partner could have owned and lived in a home in the previous four calendar years or previously received the FTHB GST/HST rebate.
The CRA said eligible buyers can apply through their online account or by mailing a paper form. For complete information go here .
