The First-Time Home Buyers' GST Rebate in Ontario (2026)

The First-Time Home Buyers' GST Rebate is a federal rebate that lets a qualifying first-time buyer recover up to $50,000 of the GST (or the federal part of the HST) on a newly built home. It removes the full 5 percent GST on a new home priced up to $1 million, phases the rebate down between $1 million and $1.5 million, and pays nothing at or above $1.5 million. At least one of the buyers has to be a first-time buyer who will live in the home as their primary residence.

We get asked about this rebate on almost every pre-construction deal now, so here is the plain-English version, with the current rules and dates.

One note on names before we start. This federal first-time buyer rebate is separate from the older GST/HST New Housing Rebate and from Ontario's provincial new-housing rebate. If you want the Ontario side and a full breakdown, see our new home HST rebate guide. This post covers the federal first-time-buyer piece.

What the rebate is worth

Up to $50,000. The First-Time Home Buyers' GST Rebate removes the full GST (the 5 percent federal tax, or the federal part of the HST here in Ontario) on a qualifying new home valued up to $1 million. The GST on a $1 million home is $50,000, which is where the maximum comes from.

For homes priced between $1 million and $1.5 million, the rebate is reduced on a straight-line basis. A home valued at $1.25 million, for example, qualifies for a 50 percent rebate, up to $25,000, according to the Department of Finance. Once the price reaches $1.5 million, the rebate drops to zero.

Who counts as a first-time home buyer

To qualify, at least one of the buyers has to be a first-time home buyer, and that person has to be:

• at least 18 years old
• a Canadian citizen or a permanent resident, and
• someone who has not lived in a home that they, or their spouse or common-law partner, owned as a primary place of residence at any time in the current calendar year or in the four preceding calendar years.

That last rule is broader than people expect. It looks back over the current year plus four years, it counts a home owned anywhere in the world, and it counts a home your spouse or partner owned even if your name was never on title. The Canada Revenue Agency sets out the full test on its who can apply page. The buyer also has to be acquiring the home to live in as their primary place of residence, not as a rental or an investment.

Which homes and which dates qualify

Timing is the part that trips buyers up, because pre-construction runs on a multi-year clock. The rebate is generally available when both of these are true:

• your agreement of purchase and sale with the builder is signed on or after May 27, 2025 and before 2031, and
• construction of the home begins before 2031 and the home is substantially completed before 2036.

It applies to a new home bought from a builder, a home you build yourself or hire someone to build, and shares in a co-operative housing corporation. A pre-construction condo or freehold you sign for today fits the window, as long as your agreement date is on or after May 27, 2025. If you signed before that date, you do not qualify, even if you close much later.

A quick example

Say you are a first-time buyer signing for a new condo priced at $900,000, with an agreement dated after May 27, 2025. The GST on that home is 5 percent, or $45,000. Because the home is under $1 million and you meet the first-time buyer test, the rebate can remove the full $45,000.

Move up to a $1.2 million home and the rebate is partial. The straight-line phase-out leaves about 60 percent of the maximum, so up to roughly $30,000. At $1.5 million there is nothing. These numbers are why the price band matters so much on a first purchase, and why it is worth confirming the exact figure before you sign.

How it fits with Ontario's HST rebate

This federal rebate is separate from, and on top of, the rebates that were already in place. New homes in Ontario are taxed under the HST, which has a 5 percent federal part and an 8 percent provincial part. The older GST/HST New Housing Rebate and Ontario's provincial new-housing rebate deal with parts of that tax for buyers generally. The First-Time Home Buyers' GST Rebate is a newer, additional break aimed only at first-time buyers, and it targets the federal 5 percent.

Because the way these rebates interact depends on your price and your situation, treat the exact combined number as something to confirm with your real estate lawyer or the CRA. Our HST rebate hub walks through the Ontario side, and our guide to closing costs on a pre-construction home shows where the tax sits among the other numbers you close on.

What to watch in your agreement

A few details decide whether the rebate actually reaches you. Make sure your agreement of purchase and sale is dated on or after May 27, 2025, because a single day on the wrong side of that line removes the rebate entirely. Confirm in writing whether the builder is crediting the rebate at closing or leaving you to claim it yourself, since that changes how much cash you need on closing day. And be honest about how you will use the home: this rebate is for a primary residence, so a unit you plan to rent out or resell does not qualify, and claiming it wrongly can be reversed by the CRA with interest. On a purchase with more than one buyer, only one of you needs to meet the first-time test, but that person still has to be on title and living in the home as their principal residence.

How and when to claim

On a home bought from a builder, the builder will often credit the rebate against what you owe, so you are not out of pocket first and waiting for a cheque later. Whether that happens depends on your agreement, so read it. If it is not credited, you claim it directly from the CRA.

Either way there is a filing deadline, generally within two years of taking ownership or of construction being substantially completed. Do not leave it sitting. The CRA confirmed the rebate is available to apply for as of 2026, so the process is live now.

Where we fit in

We represent the buyer, never the developer. On a first-time purchase we make sure the rebate is written into the agreement correctly, that your closing budget reflects it, and that the price you are quoted lines up with the tax you will actually pay. It is detailed work that keeps real money in your pocket.

Planning a first new-home purchase in the GTA? Browse current projects in Brampton and Mississauga, or register for pre-construction alerts to get price lists and floor plans before the public launch. Free to register, no fee, no obligation.