Attention First-Time Home Buyers!
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Published: Mar 13 2026
Bill C-4 has officially passed, introducing a new federal rebate that could save eligible buyers up to $50,000 on a newly built home that meet specific eligibility criteria.
Whether you're exploring quick possession options or looking to build from the ground up, here's what you need to know.
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How the Rebate Works
When you purchase a newly built home in Canada, the federal 5% GST normally applies to the purchase price. Under the new program, eligible first-time buyers can receive a rebate that returns that tax.
Full rebate on homes priced at $1 million or less — up to $50,000 back
Partial rebate on homes priced between $1 million and $1.5 million
No rebate on homes priced above $1.5 million
Do You Qualify?
To qualify for the rebate, both the buyer and the property must meet the program's requirements.
Buyer Criteria:
Canadian citizen or permanent resident
18 years of age or older
Have not owned or lived in a home owned by you or your spouse/common-law partner in the past four calendar years
Purchasing the home as your primary residence
First occupant of the home
This rebate can be claimed only once per household.
Property Criteria:
Newly constructed and unoccupied
Purchased from a builder, custom-built on land you own or lease, or a new unit in a housing co-operative
Resale homes do not qualify
Qualifying property types include detached homes, townhomes, duplexes, condominiums, and co-op units, provided they are new and unoccupied at the time of sale.
Timing Requirements
To be eligible, your home purchase must meet the following federal timelines:
Purchase agreement signed on or after March 19, 2025 and before January 1, 2031
Construction begins before January 1, 2031 and is substantially completed before December 31, 2035
How the Rebate Is Applied
Buyers apply for this rebate directly through the CRA. To learn more about the process and submit your claim, visit the CRA website. Click here to learn more.
The information on this page is for general guidance only and is subject to change. For the most current eligibility requirements and program details, please visit the Government of Canada website.
Frequently Asked Questions
It depends on your purchase price. The full rebate is available on homes priced at $1 million or less. Between $1 million and $1.5 million, the rebate gradually decreases. Homes above $1.5 million do not qualify.
The rebate is calculated based on the purchase price outlined in your agreement. If you have questions about how your selections might affect the eligible amount, our team is happy to walk you through the details.
It depends on the timing. Both you and your spouse or common-law partner need to meet the first-time buyer criteria. If your spouse owned and lived in a home within the past four calendar years, your household may not qualify. If it falls outside that window, you likely still are eligible. We recommend speaking with your mortgage broker or lawyer to confirm your situation.
It could. The program considers home ownership anywhere in the world, not just Canada. If you owned and lived in a home outside Canada within the look-back period, it may affect your eligibility. We recommend confirming your situation with a legal or financial professional.
The rebate is per household, not per person. Two eligible first-time buyers purchasing together share one rebate on the home rather than receiving two separate ones.
Eligibility is assessed at the household level, so if one purchaser does not meet the criteria, it could affect your overall eligibility. We recommend speaking with your mortgage broker or a legal professional to understand how this applies to your situation.
Yes. The program is open to both Canadian citizens and permanent residents, provided all other eligibility criteria are met.
Yes. Quick possession homes qualify as long as the home is newly constructed, unoccupied, and all other eligibility criteria are met. Our team can help you find an eligible option that works for your timeline.
Not exactly. The First-Time Home Buyer GST Rebate is a new federal program introduced through Bill C-4. While it follows similar eligibility criteria and applies to the same types of homes as the existing GST/HST New Housing Rebate, it is designed specifically for first-time buyers and offers significantly higher potential savings of up to $50,000.
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