First-Time Buyer GST Rebate: How to Save Up to $50,000 on a New Home

The first-time buyer GST rebate can put up to $50,000 back in your pocket when you buy a newly built home. It removes the full 5% GST, or the federal part of the HST, on new homes up to $1 million. Then it phases out for homes priced up to $1.5 million.

However, the rebate only applies to new homes, and the eligibility rules are strict. So here is exactly who qualifies, how much you can get and how to apply.

What is the first-time buyer GST rebate?

The first-time home buyers’ (FTHB) GST/HST rebate is a federal program that became law in 2025. According to the Canada Revenue Agency, it refunds 100% of the GST, or the federal part of the HST, on eligible new homes up to $1 million. In addition, it applies on top of the existing GST/HST new housing rebate.

Who qualifies for the first-time buyer GST rebate?

You must meet every one of these conditions, as listed on the CRA eligibility page:

• You are at least 18 years old.
• You are a Canadian citizen or permanent resident.
• You have not lived in a home that you or your spouse owned in the current calendar year or the previous four.
• Neither you nor your spouse has claimed this rebate before.
• You will live in the home as your primary residence.

The home also has to qualify. Specifically, it must be a newly built or substantially renovated home, and your purchase agreement must be dated on or after March 20, 2025 and before 2031. Construction must also start before 2031 and be substantially complete before 2036.

How much is the first-time buyer GST rebate worth?

Up to $1 million, you get the full GST back. Between $1 million and $1.5 million, the rebate shrinks steadily until it reaches zero. For example, a $1.25 million home would qualify for roughly half the maximum.

Approximate first-time buyer GST rebate by home price

$600,000$30,000

$800,000$40,000

$1,000,000$50,000

$1,250,000≈ $25,000

$1,500,000+$0

Extra savings for Ontario buyers

In Ontario, the 13% HST includes an 8% provincial portion. So Ontario first-time buyers can also claim a provincial rebate of up to $80,000 on the provincial part of the HST, according to the CRA. As a result, the combined savings on a new Ontario home can be well over $100,000.

How to apply for the first-time buyer GST rebate

There are two main ways to receive it. First, when you buy from a builder, the builder can credit the rebate to you at closing. In that case, the builder files the application with the CRA. Otherwise, you apply directly.

Applying for the rebate

1. Ask your builder first

   Many builders credit the rebate on your statement of adjustments, so you save the money at closing.

2. If not, apply to the CRA

   Use Form GST190 for homes bought from a builder, or Form GST191 for homes you build yourself. You can also apply through your CRA account.

3. Include Ontario schedules

   Ontario buyers also complete Form RC7190-ON for the provincial part.

4. Apply within two years

   You have up to two years from the day ownership is transferred to you.

How long does it take to receive the rebate? When your builder credits it, you get the benefit immediately at closing. When you apply directly, however, the timing depends on CRA processing, so budget as if the money will arrive a few months later.

How the rebate affects your mortgage and budget

A rebate credited at closing effectively lowers your purchase price. That means you may need a smaller mortgage, and in some cases a smaller minimum down payment. It can also reduce your CMHC insurance premium, because the premium is based on your loan size.

Meanwhile, you can still use the FHSA and the RRSP Home Buyers’ Plan for the same purchase. So stacking these programs can make a new build far more affordable than its sticker price suggests.

Frequently asked questions

Sources: CRA: First-time home buyers’ GST/HST rebate · CRA: Who can apply · CRA: Applying for a home bought from a builder