Canada's First-Time Home Buyers' GST Rebate (Bill C-4): Up to $50,000 Back on a New Home

Newly built homes — preconstruction condos, new detached houses, substantially renovated homes — carry the 5% federal GST, which combines with Ontario’s provincial portion into 13% HST. On an $800,000 new home, the federal GST alone is $40,000, and buyers have always absorbed it.

The First-Time Home Buyers’ GST Rebate created by Bill C-4 targets exactly that 5%: eligible first-time buyers can recover it in full, up to $50,000 (the cap that corresponds to a $1M price). It sits on top of the existing GST New Housing Rebate and is reserved specifically for first-time buyers.

Step 1 — Confirm You're a First-Time Buyer

The definition is broader than many expect: you must not have owned and occupied a home as your primary residence in the current calendar year or any of the four preceding calendar years (anywhere in the world).

If more than four full calendar years have passed since you last owned and lived in a home, you may qualify again. A spouse or common-law partner’s ownership is also taken into account. (Source: Canada.ca)

Step 2 — Check Which Price Band Applies

• $1,000,000 or less: full refund of the 5% federal GST, up to $50,000.
• $1,000,000 – $1,500,000: the rebate phases out on a straight-line basis — a $1.2M home recovers roughly 60% of the maximum.
• $1,500,000 or more: no rebate.

‘Price’ here means the purchase price / fair market value as measured for GST/HST purposes.

Step 3 — Mind the Timeline

The agreement of purchase and sale must be signed on or after March 20, 2025, and before 2031. Construction or substantial renovation must begin before 2031, be substantially completed before 2036, and ownership must transfer to you before 2036. (Source: Canada.ca)

This rebate applies only to new homes bought from a builder, or qualifying owner-built homes. Resale transactions don’t attract GST, so there is nothing to rebate. Assignment purchases of preconstruction units are more complex — get advice before you sign.

Many builder contracts already price in the older GST New Housing Rebate. This new first-time rebate is additional, so a qualifying first-time buyer’s true closing cost can be lower than the contract’s headline number. Have your lawyer and agent confirm how GST is handled in the agreement before you sign.

Q: How much can a first-time buyer save with the GST rebate?

According to the CRA (2026), a qualifying new home priced at $1 million or less gets a full refund of the 5% federal GST, up to $50,000. Between $1M and $1.5M the rebate phases out, and homes at $1.5M or above get nothing.

Q: When did the rebate take effect?

Bill C-4 received Royal Assent on March 12, 2026. The agreement of purchase and sale must be signed on or after March 20, 2025 and before 2031. The CRA has been processing claims since Royal Assent. (Source: Canada.ca)

Q: I sold a home five years ago — am I still a first-time buyer?

Possibly. The test is whether you owned and occupied a primary residence in the current year or the four preceding calendar years. If more than four full calendar years have passed, you may qualify again. A spouse’s ownership is also considered.

Q: Does the rebate apply to resale homes?

No. Resale transactions don’t attract GST, so there’s nothing to rebate. The rebate applies only to new homes bought from a builder or qualifying owner-built homes.