First-time home buyers' GST/HST rebate on new homes

The short answer

The first-time home buyers’ GST/HST rebate is a federal rebate for people who buy a newly built or substantially renovated home as their primary residence. It returns up to 100% of the GST or the federal part of the HST, capped at $50,000. The amount is full when the home is $1 million or less. It is reduced between $1 million and $1.5 million and there is no rebate at $1.5 million or more.

The CRA says it is accepting applications, in a page dated March 17, 2026. This post is general information. An accountant or lawyer can confirm how the rebate applies to a specific purchase. For the wider picture, see the first-time home buyers guide.

Who qualifies

The CRA sets a buyer test. You must meet all of these:

• You are 18 or older.
• You are a Canadian citizen or permanent resident.
• You did not live in a home owned by you or your spouse or partner in the current year or the previous 4 years.
• Neither you nor your partner has received this rebate before.

The home must be newly built or substantially renovated and be your primary residence. A resale purchase is outside the rebate.

The amounts at each price level

The CRA describes three bands:

• At or under $1 million: the full rebate, which is up to 100% of the GST or the federal part of the HST, capped at $50,000.
• Between $1 million and $1.5 million: a reduced rebate.
• At $1.5 million or more: no rebate.

The reduced band spans $500,000, because $1.5 million less $1 million is $500,000. The CRA page states that the rebate is reduced across that band. This post does not give a reduction formula or a dollar figure for any price inside it. A builder or an accountant can work out the figure for a given price using the CRA’s own page.

The agreement dates

Two sets of dates apply:

• The purchase agreement with the builder is signed on or after March 20, 2025 and before 2031.
• Construction is substantially completed and ownership is transferred before 2036.

Check both dates against your agreement and the builder’s schedule before you rely on the rebate. A buyer with an earlier agreement date should ask an accountant whether the rebate applies. So should a buyer whose home would not be finished in time.

The Ontario provincial rebate

The CRA page states that Ontario offers an additional provincial rebate on part of the 8% provincial HST, which can be claimed with the federal rebate. This post does not give the provincial amount because the source does not. Ask the builder, an accountant or the CRA how the two rebates are claimed together.

How to claim

The CRA describes two routes:

1. The builder may credit the rebate to you at closing.
2. Otherwise you apply through your CRA account or on Form GST190.

Claims are generally made within 2 years of taking ownership. Ask the builder early whether the credit at closing is offered and what documents the builder needs from you.

Primary residence and timing

The rebate is tied to a primary residence. The CRA describes it as available on newly built or substantially renovated homes that the buyer uses as a primary residence. If the builder does not credit the rebate at closing, the claim is made afterward. The CRA says claims are generally made within 2 years of taking ownership. Keep your purchase agreement and your closing statement together so they are on hand.

The Home Buyers’ Amount on the tax return

A separate federal measure sits on the income tax return. The CRA says a buyer can claim up to $10,000 on line 31270 for a qualifying home acquired in 2025. The amount is $10,000 for 2022 to 2024 and $5,000 for 2015 to 2021. It is a non-refundable credit. The CRA test asks that you did not live in a home you owned in the year of acquisition or the 4 prior years. You must also intend to occupy the home within 1 year. The credit amount is not the same as the tax saved. The sources used here do not state the saving, so ask an accountant.

How this fits with other first-time buyer measures

The GST/HST rebate is separate from the Ontario land transfer tax refund, the First Home Savings Account and the Home Buyers’ Plan. The refund has its own maximum of $4,000. The accounts are covered in the FHSA and Home Buyers’ Plan post. Mortgage insurance for a smaller down payment is covered in the loan insurance premiums post. The mortgages page has the mortgage contact details and licence information.

The District of Muskoka lists a Development Charges Loan Program for first-time buyers buying or building a new home in Muskoka. That page does not say whether funding is currently open. Contact the District’s Affordable Housing Office at 705-645-2100 ext. 4410 to ask.

What to check with a builder

• Whether your agreement date and the expected ownership date fit the CRA dates.
• Whether the price puts the home in the full, reduced or no rebate band.
• Whether the builder credits the rebate at closing.
• How the Ontario provincial rebate is handled on your closing statement.
• What documents the builder needs from you to support a claim.

Ask Kandice or Kirby about buying a new build in Muskoka and which of these steps to raise with the builder.