There’s exciting news on the horizon for first-time home buyers in Canada –
The federal government has proposed a new GST/HST rebate that could result in significant savings on new homes—and if you’re planning to buy your first home, it’s worth understanding what this means for you.
Continue reading to learn more about how it could impact your homebuying journey with Activa.
What Is the First-Time Home Buyers GST/HST Rebate?
Announced in May 2025, the First-Time Home Buyers (FTHB) 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
This rebate could mean up to $50,000 in savings for eligible buyers.
To qualify, 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 home buyer.
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.
What Happens If You 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:
- 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. - 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 purchase is eligible, you will receive the rebate—either through your builder or by claiming it afterward.
🔗 Learn More
- Government of Canada – GST Relief for First-Time Buyers
- Canada Revenue Agency – GST/HST New Housing Rebate
- CHBA – Industry Updates
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.
📩 [Contact Us: info@activa.ca] | 🏡 Browse Available Homes
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.
