What is the federal First-Time Home Buyers' GST Rebate?

This rebate became law on March 12, 2026, when Bill C-4 received Royal Assent. It refunds the 5% federal GST on a qualifying new home for first-time buyers, to a maximum of $50,000.

How much

Full rebate on homes priced up to $1,000,000. Between $1,000,000 and $1,500,000 it phases out on a straight line, so the midpoint, $1,250,000, gives you about half, roughly $25,000. At $1,500,000 and above it is zero.

Who counts as a first-time buyer

You must be at least 18, a Canadian citizen or permanent resident, and neither you nor your spouse or common-law partner can have lived in a home either of you owned, anywhere in the world, in the current calendar year or the four preceding calendar years.

Read that twice, because it is where most disqualifications happen. It is not “have you owned property.” It is “have you lived in a home you or your partner owned.” Someone who owned a rental they never occupied may still qualify. Someone who has never owned anything but lives in their partner’s condo may not. See the spousal test.

The window

The agreement with the builder must be signed on or after March 20, 2025 and before January 1, 2031. The retroactive start is deliberate, agreements from spring 2025 onward can qualify.

Claiming it

You generally have two years from taking ownership or from the completion of construction to apply. In practice, if your agreement assigns the rebate to the builder, the builder credits it against your purchase price and claims it from CRA, and you never see a cheque. More on how claiming works.

One caution worth repeating

Uptake has been slow and CRA scrutiny is real, reporting in mid-2026 showed only a small fraction of applications approved at that point. If your eligibility turns on the spousal test, on a signing date near a window edge, or on whether the home is genuinely your primary residence, get it confirmed in writing by your accountant before you close rather than assuming.