The first-time home buyers rebate can return up to $50,000 in GST or the federal part of the HST for eligible Canadians purchasing, building or substantially renovating a new home, as outlined in the GST/HST rebate program.
The Canada Revenue Agency’s updated guidance confirms that the federal rebate covers 100% of the GST or federal HST portion on qualifying homes valued at up to $1 million.
The rebate is reduced for homes priced between $1 million and $1.5 million and is unavailable for homes valued at $1.5 million or more.
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How much the first-time home buyers rebate is worth
The maximum federal benefit is $50,000, although the amount depends on the value of the home and the GST or federal HST paid.
| Home value | Federal rebate |
|---|---|
| Up to $1 million | Up to 100% of the GST or federal part of the HST, to a maximum of $50,000 |
| More than $1 million and below $1.5 million | Gradually reduced based on the value of the home |
| $1.5 million or more | No first-time home buyers’ GST/HST rebate |
For example, the CRA says an eligible buyer purchasing a $1.25-million home could qualify for 50% of the maximum rebate, producing a federal rebate of $25,000 if all other conditions are met.
The program applies to the GST or federal portion of the HST, not automatically to any provincial portion of harmonized sales tax.
Who may qualify for the rebate
Generally, an applicant must be at least 18 years old and be a Canadian citizen or permanent resident.
The applicant must also meet the CRA’s first-time buyer eligibility rules, which generally means they did not live in a home owned or jointly owned by themselves or their spouse or common-law partner during the calendar year of ownership or any of the previous four calendar years.
The home must be newly built or substantially renovated and acquired for use as the buyer’s primary place of residence.
Applicants must meet the existing GST/HST new housing rebate conditions, subject to the expanded price limits used for the first-time buyer program.
The CRA says the rules can apply to a home purchased from a builder, a home bought with leased land, or a home built or substantially renovated by the applicant.
Important agreement and construction dates
For a home purchased from a builder, the agreement of purchase and sale generally must have been entered into on or after March 20, 2025, and before 2031.
Construction or substantial renovation must begin before 2031 and be substantially completed before 2036.
Ownership of the home must also be transferred to the buyer before 2036.
For owner-built homes, construction or substantial renovation must generally begin on or after March 20, 2025, and before 2031, with completion and occupancy taking place before 2036.
The March 20, 2025 start date means some buyers who signed agreements before that date will not qualify, even if the home is completed later.
When and how to apply
Applications are open through the CRA’s first-time home buyers’ GST/HST rebate process.
The application route depends on whether the buyer purchased a completed or partially completed home from a builder, bought a home and leased the land, or built or substantially renovated the home themselves.
Applicants should keep the purchase and sale agreement, closing documents, invoices and other records used to calculate the GST or HST paid.
For owner-built homes, the CRA says the claim is generally available after the construction or substantial renovation is substantially completed and the home has been occupied in the required circumstances.
Most applicants have up to two years after the applicable base date to submit a claim, although the base date varies according to the type of project and transaction.
The CRA has warned that higher-than-usual housing rebate volumes may affect processing times and says applicants should anticipate 120 days for claims beginning May 11, 2026.
What buyers should check before claiming
- Confirm that the home is new or substantially renovated rather than a resale property.
- Check that the purchase agreement was signed within the program’s eligible date range.
- Review whether the home will be used as the applicant’s primary residence.
- Apply the first-time buyer test to both the applicant and their spouse or common-law partner.
- Calculate the rebate using the home’s value, since the benefit begins to phase out above $1 million.
- Submit complete forms and supporting documents to avoid delays or a possible denial.
The federal measure received Royal Assent on March 13, 2026, allowing the CRA to process claims under the new program.
Finance Canada’s legislation to make life more affordable generally applies to eligible agreements entered into on or after March 20, 2025, and before 2031.
Buyers should distinguish this federal rebate from any separate provincial housing rebate that may be available depending on where the home is located.
Frequently Asked Questions
How much is the first-time home buyers’ GST/HST rebate worth?
Eligible buyers can receive up to $50,000, covering up to 100% of the GST or federal part of the HST on qualifying homes valued at up to $1 million.
Does the rebate apply to homes priced above $1 million?
Yes. The rebate is gradually reduced for homes valued above $1 million and below $1.5 million, but no rebate is available at or above $1.5 million.
What is the first-time buyer test?
Generally, the buyer must not have lived in a home owned or jointly owned by themselves or their spouse or common-law partner during the purchase year or any of the previous four calendar years.
What homes qualify for the rebate?
The program can apply to newly built or substantially renovated homes purchased from a builder, certain homes involving leased land, and qualifying owner-built or substantially renovated homes used as a primary residence.
When should buyers apply?
The deadline generally runs for two years after the applicable base date, but the base date depends on the type of purchase or construction project. Buyers should submit complete documentation through the CRA process.
Fact-Checked: Key amounts, eligibility rules, dates, application conditions and processing information were checked against current Canada Revenue Agency and Finance Canada guidance.
Disclaimer: Eligibility depends on the specific purchase, construction, occupancy and first-time buyer circumstances, so applicants should review the CRA rules before filing.