First-Time Home Buyers' GST Rebate (FTHB GST Rebate)
- hoejin
- May 30
- 2 min read
On May 27, 2025, the Canadian government introduced the First-Time Home Buyers' GST Rebate (FTHB GST Rebate) to make homeownership more affordable for first-time buyers.
Key Features of the FTHB GST Rebate:
Full GST Rebate: For new homes priced up to $1 million, first-time buyers can receive a 100% rebate on the GST paid, potentially saving up to $50,000.
Partial Rebate: For homes priced between $1 million and $1.5 million, the rebate is phased out linearly. For example, a home valued at $1.25 million would be eligible for a 50% GST rebate, equating to up to $25,000 in savings.
No Rebate: Homes priced at $1.5 million or more are not eligible for this rebate.
Eligibility Criteria:
To qualify for the FTHB GST Rebate, you must:
Be at least 18 years
Be a Canadian citizen or permanent resident.
Not have owned a home, either in Canada or abroad, that you or your spouse or common-law partner lived in during the current or previous four calendar years.
Applicable Property Types:
The rebate applies if you:
Purchase a new home from a builder.
Build, or hire someone to build, a home on land you own or lease.
Purchase shares of a co-operative housing corporation.
Important Dates:
The Agreement of Purchase and Sale must be entered into on or after May 27, 2025, and before 2031.
Construction of the home must begin before 2031 and be substantially completed before 2036.
Ontario-Specific Information:
In Ontario, the Harmonized Sales Tax (HST) combines the federal GST and the provincial sales tax. The FTHB GST Rebate applies to the federal portion of the HST. Ontario also offers a provincial new housing rebate, which may further reduce the amount of HST payable on a new home.
The Ontario New Housing Rebate allows individuals to recover a portion of the Harmonized Sales Tax (HST) paid on the purchase or construction of a new home, or on substantial renovations to an existing home, intended as their primary place of residence.
Key Details:
Rebate Amount: The maximum provincial rebate is $24,000, which represents 6% of the first $400,000 of the home's purchase price.
Eligibility: This rebate is available even if the home's fair market value exceeds $450,000, unlike the federal rebate which is phased out at that threshold.
Application: Homebuyers can apply for this rebate directly, or builders may credit the rebate amount at the time of purchase.
For comprehensive information and application forms, refer to the Canada Revenue Agency's guide on the GST/HST New Housing Rebate.
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