Canada’s proposed First-Time Home Buyer GST/HST Rebate could save eligible buyers up to $50,000 on new homes purchased on or after May 27, 2025, with full relief on homes up to $1M and partial relief up to $1.5M, pending final Senate approval.
There’s exciting news on the horizon for first-time home buyers in Canada
The federal government has proposed a new GST/HST rebate for first-time homebuyers that could result in significant savings on new homes. If you’re planning to buy your first home, it’s worth understanding what this means for you.
What Is the First-Time Home Buyers GST/HST Rebate?
Announced in May 2025, the First-Time Home Buyers GST/HST Rebate aims to make new home ownership more affordable by:
• Removing the GST (or federal portion of HST) on new homes priced up to $1 million
•Reducing the tax on new homes priced between $1 million and $1.5 million
How Much Can First-time Homebuyers Save With The GST/HST Rebate?
Eligible first-time homebuyers may receive full GST relief, or the federal portion of HST relief, on new homes priced up to $1 million, with partial tax relief available for new homes priced between $1 million and $1.5 million, subject to final legislation. This rebate could mean up to $50,000 in savings for eligible buyers.
How Do I Qualify For The First-time Homebuyers Rebate?
To qualify for the rebate, the agreement of purchase and sale must be signed on or after May 27, 2025, and the buyer must meet the federal criteria for a first-time homebuyers in Canada.
What’s the Status of the Rebate?
The legislation implementing the rebate (Bill C-4) has now passed all stages in the House of Commons as of December 11, 2025. However, the Senate adjourned for its winter recess before passing the bill, and will not return until February 3, 2026.
Once the Senate passes the bill and Royal Assent is granted, the rebate can officially be claimed.
Will I Qualify For a First-time Homebuyers Rebate If I Buy a Home Now?
If you’re a first-time buyer considering a new home purchase before the rebate becomes law, here’s what you need to know:
1. If your home closes before the legislation passes:
You’ll need to apply directly to the Canada Revenue Agency (CRA) to receive your rebate once it’s available.
2. If your home closes after the legislation passes:
Your builder may be able to apply the rebate as a credit at closing, reducing the amount you owe.
Either way, if your home purchase is eligible, and you meet the criteria as a first-time homebuyer, you will receive the rebate-either through your builder or by claiming it afterward.
Thinking About Buying Your First Home?
Explore our homes and communities today, and let our Sales Representatives help you understand how the rebate could apply to you.
The First-Time Home Buyer GST Rebate is a federal government program with specific eligibility criteria, including purchase date, home value, and personal residency requirements. Rebates apply to new homes purchased on or after May 27, 2025, and phase out for homes priced between $1–1.5M. Activa does not administer this program. Details may change; visit the Government of Canada website or speak with a Sales Representative to learn more.
