A Meaningful Shift for First-Time Buyers

Announced last Spring, the federal First-Time Home Buyers' (FTHB) GST/HST Rebate is now in effect as of March 2026, offering up to $50,000 in tax relief on new or substantially renovated homes, says the Canada Revenue Agency (CRA). Eligible buyers can receive a full rebate on homes under $1 million and a partial rebate on homes up to $1.5 million, provided the purchase agreement was signed on or after March 20, 2025. The Canada Revenue Agency will now be able to start processing rebate claims.

Please note that the rebate will generally apply to agreements of purchase and sale entered on or after March 20, 2025 and before 2031.

What this means for first-time home buyers:

In simple terms, this rebate can reduce the upfront cost of buying a new home—sometimes by a meaningful amount.

• Less tax to pay:
  Buyers may receive up to $50,000 back, lowering the total purchase cost of a new or substantially renovated home.

• Improved affordability:
  With less cash needed for GST/HST, buyers may find it easier to qualify for a mortgage or stay within budget.

• More options to consider:
  New construction and pre-sale homes—which often felt out of reach—may now be more realistic choices.

What it doesn’t change:

• It only applies to new or substantially renovated homes (not most resale properties)

• Eligibility will depend on price thresholds and buyer qualifications

• It doesn’t replace the need to be well-priced and strategic in today’s market

The takeaway:

For first-time buyers, this is one of the more tangible shifts we’ve seen—it can meaningfully reduce the cost of getting into the market, particularly if you’re open to newer homes.

If you know someone that were first time buyers and purchased a new home for under $1.5million between March 20 2025 and today, you should reach out and make sure they apply for the rebate.