A New GST Rebate for First-Time Home Buyers Is Now in Effect
If you’re a first-time buyer considering a newly built home, there’s a significant federal program that became law this year and it’s worth understanding before you move forward.
Bill C-4 received Royal Assent on March 12, 2026, officially bringing the updated First-Time Home Buyer GST Rebate into effect.
The Canada Revenue Agency can now begin processing claims, and eligible buyers could receive up to $50,000 back on the GST paid on a qualifying purchase.
What the Rebate Covers
The rebate is designed to reduce the upfront cost of purchasing or building a new home. It applies to buyers who purchase a newly built home from a builder, build or substantially renovate a home, or purchase shares in a co-operative housing corporation.
For homes priced up to $1 million, eligible buyers may receive a rebate of up to 100% of the GST paid, to a maximum of $50,000. Homes priced between $1 million and $1.5 million fall into a gradual phase-out range, and for properties above $1.5 million the full GST is payable.
In British Columbia, first-time buyers purchasing a newly built home may also benefit from stacking this GST rebate with the BC Property Transfer Tax exemption. The PTT exemption applies to newly built homes up to $1.1 million for any buyer using the property as their primary residence, while the GST rebate applies to new homes up to $1 million for qualifying first-time buyers only. For first time home buyers, these two programs used together, can meaningfully reduce the upfront cost of a new construction purchase and are worth factoring into your planning early.
Who Qualifies
To be eligible, you must be 18 or older, a Canadian citizen or permanent resident, and you cannot have lived in a home that you or your spouse or common-law partner owned in the current year or the previous four calendar years. The rebate is not available to corporations or partnerships.
One detail worth keeping in mind: your spouse or common-law partner's ownership history counts just as much as your own. Even if you personally have never owned property, their history within that four-year window could affect your eligibility. When in doubt, confirm your status before making any purchase decisions based on this rebate.
Timing and Eligibility Windows
The rebate applies to home purchase agreements signed after March 20, 2025, and before 2031, or to construction that begins before 203, is substantially completed and occupied as your principal residence before 2036. Eligible buyers generally have two years from possession or completion to submit their claim.
If your agreement was signed between March 20, 2025, and May 26, 2025, note that CRA processing for those applications will begin once their system updates are complete.
For full claim instructions and eligibility details, visit the official CRA First-Time Home Buyer GST Rebate page at canada.ca
Why This Matters for Your Purchase Decision
GST on a new construction home adds up quickly. On a $900,000 property, that’s $45,000 in federal tax. A rebate of this size has a real impact on affordability, particularly for buyers who are working with a specific budget or managing closing costs alongside their down payment.
Programs like this one are worth factoring into your planning early, not after you’ve already committed to a purchasing a home. Understanding what you qualify for and how it fits into the overall numbers is exactly the kind of conversation with a Kelowna mortgage broker that shapes a stronger strategy from the start.
If you’re exploring new construction or want to understand how this rebate fits into your situation, give us a call, we’re happy to walk through the details with you.
