The First-Time Home Buyers’ GST rebate refunds 100% of the federal GST on a new home valued up to $1,000,000 — a saving of up to $50,000 — then phases out on a straight line to zero at $1,500,000.
The rebate was announced by the federal Department of Finance on May 27, 2025 and enacted in Bill C-4, which received Royal Assent on March 12, 2026. It is now in force.
How much you can save
- New home valued up to $1,000,000: the full 5% federal GST is rebated — up to $50,000.
- New home valued between $1,000,000 and $1,500,000: the rebate shrinks on a straight-line basis.
- New home valued at $1,500,000 or more: no First-Time Home Buyers’ GST rebate.
- One rebate per person, once in a lifetime; spouses or common-law partners count as a single claim.
Who qualifies as a first-time buyer
A home you owned and lived in five or more years ago does not disqualify you.
- At least one purchaser is a Canadian citizen or permanent resident, 18 or older.
- The home is your primary residence and you are the first to occupy it.
- Neither you nor your spouse or common-law partner has lived in a home you owned in the current calendar year or the four preceding calendar years (in Canada or abroad).
It only applies to new homes
The rebate covers new or substantially-renovated homes — bought from a builder, owner-built, or a co-op share — the same categories as the existing GST/HST New Housing Rebate. It does not apply to resale homes, which are generally exempt from GST/HST anyway. For most buyers of an existing Woodstock or Oxford County home, this rebate will not apply — but if you are buying a new build, it is a significant saving worth confirming with your builder and lawyer.
How it stacks with the Ontario rebate
In Ontario, HST on a new home is 13% — 5% federal plus 8% provincial. This new rebate targets the federal 5% and tops up the existing federal New Housing Rebate. The separate Ontario New Housing Rebate (up to $24,000 of the provincial portion) is unchanged, so a first-time buyer of a qualifying new home in Ontario can claim both.
The dates that matter
Tax rules change, and the fine print on a rebate this size is worth confirming against the official Canada Revenue Agency page and with your own lawyer or accountant before you rely on it for a purchase. Team Beckett can point new-build buyers to the right questions to ask.
- Your agreement of purchase and sale must be signed on or after May 27, 2025 and before 2031.
- Construction must begin before 2031 and be substantially complete before 2036.
- An anti-avoidance rule blocks cancelling a pre–May 27, 2025 agreement and re-signing to qualify.
Frequently asked questions
How much can the First-Time Home Buyers’ GST rebate save me?
Up to $50,000 — the full 5% federal GST on a new home valued up to $1,000,000. Between $1,000,000 and $1,500,000 the saving shrinks on a straight line, and there is no rebate at $1,500,000 or more.
Does the GST rebate apply to a resale home?
No. It applies only to new or substantially-renovated homes — bought from a builder, owner-built, or a co-op share. Resale homes are generally exempt from GST/HST already, so most buyers of an existing home won’t use this rebate.
I owned a home years ago — can I still qualify?
Possibly. You qualify as a first-time buyer if neither you nor your spouse or common-law partner has lived in a home you owned in the current calendar year or the previous four calendar years. A home owned and occupied more than five years ago does not disqualify you.
Can I claim this and the Ontario new-housing rebate too?
Yes. The new federal rebate targets the 5% federal GST and tops up the existing federal New Housing Rebate. The Ontario New Housing Rebate (up to $24,000 of the provincial portion) is separate and unchanged, so a first-time buyer of a qualifying new home can claim both.
When must I have signed my purchase agreement?
On or after May 27, 2025 and before 2031, with construction beginning before 2031 and substantially complete before 2036. Only one rebate is available per person, once in a lifetime.
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