On March 12, 2026, the Making Life More Affordable for Canadians Act (Bill C-4) officially received Royal Assent, bringing the new First-Time Home Buyers’ (FTHB) GST/HST Rebate into law.
It allows eligible buyers to recover the 5% GST on qualifying newly built homes.
This program is designed to improve affordability for first-time buyers and stimulate new housing construction.
Rebate Amounts & Thresholds
- Up to $1 Million: 100% rebate of the federal GST (max $50,000).
- $1 Million to $1.5 Million: A partial rebate on a sliding scale.
- Above $1.5 Million: No rebate is available.
Examples of Potential Savings
- $500,000 home → $25,000 rebate
- $750,000 home → $37,500 rebate
- $1,000,000 home → $50,000 rebate
Who Qualifies
- Must be a first-time home buyer (no principal residence owned in the past 4 years)
- Must be 18 years or older and a Canadian citizen or permanent resident
- The home must be used as a primary residence
- If buying with a partner, both buyers must qualify
Core Eligibility Requirements
- Applies to new construction or substantially renovated homes only (not resale homes)
- Eligible for purchase agreements signed on or after March 20, 2025
- The program is temporary and currently runs until 2030.
- Construction must begin before 2031 and be substantially completed before 2036.
This represents a major expansion from the previous GST New Housing Rebate, which capped savings at approximately $6,300.
Potential Additional Savings in Ontario
In provinces with HST, the rebate only applies to the 5% federal portion. However, Ontario has announced plans to mirror this for its 8% provincial portion for homes up to $1 million (a proposed expansion, not confirmed yet).
If implemented, the combined federal and provincial incentives could total as much as $130,000 in relief for eligible buyers purchasing a newly built home.
How to Apply
- Purchased from a Builder: You can apply using Form GST190. Builders may also credit this amount to you at the time of sale.
- Owner-Built: Use Form GST191 and the Construction Summary Worksheet.
- Online: The fastest way to apply is through the CRA My Account portal. The CRA is updating filing systems to process applications where the purchase agreement was signed between March 20, 2025, and May 26, 2025. The CRA will begin processing these applications once the filing system updates are completed.
What This Means for the Market
While this program will not directly impact the resale market, it could still have broader effects.
It may encourage more first-time buyers to consider newly built homes and provide support for the new housing development sector, which has been facing pressure due to weak pre-construction sales.
However, because the rebate only applies to new construction, its direct impact on the broader resale market may remain limited in the short term.