The first-time home buyers’ (FTHB) GST/HST rebate went into effect retroactively on March 20, 2025 and it:

• Eliminates the GST (or federal part of the HST) for first-time home buyers on a new home valued up to $1 million.
• Allows first-time home buyers to reduce the amount of tax they pay on a new home valued between $1 million and $1.5 million.

The FTHB GST/HST rebate is for eligible individuals who are buying, building or substantially renovating their first home. This first home must be:

• Newly built or substantially renovated.
• For use as the individual's primary place of residence.

Depending on the value of the home, the individual could recover up to 100% of the GST (or federal portion of the HST) paid, up to $50,000.

For new homes valued:

• At or below $1 million, the rebate is up to 100% (up to a maximum rebate of $50,000).
• Between $1 million and $1.5 million, the maximum rebate is gradually reduced.
• At or above $1.5 million, there is no rebate.

1. You must be a first-time home buyer.

Generally, to be considered a first-time home buyer, all of the following must be true:

·         You are at least 18 years of age.

·      You are a Canadian citizen or permanent resident of Canada.

·         You have not lived in a home that you or your spouse or common-law partner owned, or jointly owned, whether in or outside of Canada, as your primary place of residence at any time in the calendar year or in the previous four calendar years.

·    You meet all of the criteria above on a specific date. This date will depend on whether you bought your home from a builder or built it yourself.

·       Neither you, nor your spouse or common-law partner, have previously received an FTHB GST/HST rebate.

2.You purchased or built a home.

As a first-time home buyer, you may be eligible if you have done one of the following:

· You purchased a newly built or substantially renovated home from a builder for use as your primary place of residence.

·    You constructed or substantially renovated a home or hired someone else to construct or substantially renovate a home for use as your primary place of residence.

· You purchased a share in a co-operative housing corporation (co-op) for the purpose of using a unit in a newly built or substantially renovated co-op as your primary place of residence.

How you apply for the rebate will depend on whether you purchased your home from a builder or built your home yourself.

·   There are five rebate application types to choose from if you purchased your home from a builder. Each application type has its own submission requirements and filing deadline. Basically, it is either builder or you as a buyer submit the rebate application and you will get your applicable rebate amount back.

·   If you built your own house or substantially renovated, filing applications depends on your base date which is basically the date when the construction or substantial renovation is substantially completed or when you transfer ownership to the purchaser, and you have up to 2 years after your base date to claim the rebate.