New GST Rebate for First-Time Home Buyers: Up to $50,000 Back on New Homes

Canada’s new First-Time Home Buyers’ GST/HST Rebate is now law. Eligible buyers can save up to $50,000 on newly built homes. Here’s exactly how it works in 2026.

Good news for aspiring homeowners: The federal government’s new First-Time Home Buyers’ (FTHB) GST/HST Rebate is officially in effect.

Passed in March 2026, this program helps reduce the upfront cost of buying or building a new home by refunding the 5% federal GST (or the federal portion of HST).

How Much Can You Save?

• Homes priced at $1 million or less: Full rebate UP TO $50,000

• Homes between $1 million and $1.5 million: Partial rebate on a sliding scale

• Homes over $1.5 million: No rebate available

This rebate applies on top of the existing GST/HST New Housing Rebate, so some buyers could effectively pay little to no federal GST.

Who Qualifies?

You must be a first-time home buyer: You (and your spouse or common-law partner) have not owned and lived in a home anywhere in the world in the last four years (plus the current year).

The home must be:

• Newly constructed or substantially renovated

• Used as your primary residence

• Purchase agreement signed on or after March 20, 2025 (and before 2031)

Why It Matters

This is one of the most generous federal incentives in years. On a $800,000 new condo or townhome, you could save the full $40,000 in GST. That money can go toward your down payment, closing costs, or furnishings.

Applications are now open through the Canada Revenue Agency (CRA). If buying from a builder, they may be able to credit the rebate at closing.

Ready to take advantage? This program makes new builds significantly more affordable for first-time buyers right now.

FAQ
Q: Is the rebate automatic?
A: No, you (or your builder) must apply through the CRA.

Q: Does it apply to resale homes?
A: No, only newly built or substantially renovated homes.

Q: Can I combine it with BC’s First-Time Home Buyers’ Property Transfer Tax exemption?
A: Yes, they stack nicely.

Have questions about how this rebate works with your budget or other incentives? Contact us we’re happy to help you run the numbers.