After years of delay, Bill C-4, the Making Life More Affordable for Canadians Act, became law on March 31, 2026 — giving first-time home buyers of new-build properties a GST rebate of up to $50,000. But in the year that passed since it was first announced, both buyers and builders were, at times, uncertain — and misunderstanding even one eligibility rule could still cost you tens of thousands of dollars.
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What buyers of new builds can now expect to get back
The First-Time Home Buyer (FTHB) GST Rebate provides eligible first-time home buyers with a full or partial refund of the GST — or the federal portion of the HST — on newly constructed or substantially renovated homes.
For new homes valued up to $1 million, the rebate covers 100% of the GST paid, up to a maximum of $50,000. For homes valued between $1 million and $1.5 million, the rebate is gradually reduced on a sliding scale. There is no rebate for homes valued at $1.5 million or more (1).
This is a dramatic improvement over the old GST New Housing Rebate, which capped savings at approximately $6,300 — a number rendered largely irrelevant by today’s home prices.
For agreements of purchase and sale entered into on or after March 31, 2025, and before 2031, eligible first-time buyers purchasing new homes under $1 million will pay no GST. For homes priced between $1 million and $1.5 million, a partial rebate applies on a sliding scale, up to a maximum of $50,000. No rebate is available on homes above $1.5 million. This relief does not apply to resale properties or those buyers already in the housing market.
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Ontario buyers can expect even more — but it’s not law yet
If you are buying a new build in Ontario, the provincial government has announced its intention to also rebate the full 8% provincial portion of the HST on homes up to $1 million, with a phase-out between $1 million and $1.5 million (2). If implemented, eligible Ontario buyers could qualify for a rebate up to $130,000 — combined federal and provincial savings.
However, the Ontario government has not yet passed enabling legislation for its provincial rebate. As such, buyers in Ontario should not plan their finances around the provincial $80,000 component until that legislation receives Royal Assent.
If you’re in the market, be sure to monitor provincial announcements closely before signing.
The date that determines everything
The single most consequential detail in this rebate is a date: March 31, 2025.
When Bill C-4 was first introduced into Parliament on May 27, 2025, the eligibility window was set to begin on that date — leaving buyers who had signed purchase agreements between the March 31, 2025 announcement and May 26, 2025 in a costly grey zone. That unfairness was corrected. During Parliamentary committee review in late 2025, the effective date was amended and backdated to March 31, 2025 — the date the rebate was first announced by the federal government.
That means, the FTHB GST Rebate is available for agreements of purchase and sale entered into on or after March 31, 2025, and before January 1, 2031. If you signed after the government’s original announcement and before the bill was introduced into Parliament, you are eligible.
Agreements signed before March 31, 2025 do not qualify.
And the protection against workarounds is strict. If a pre-March 31, 2025 agreement is cancelled and a new one signed in an attempt to qualify, the CRA may disallow the rebate. The same applies to assignments: if the original purchase agreement predates March 31, 2025, an assignment of that contract does not unlock eligibility.
Who actually qualifies — and who doesn’t
To qualify for the FTHB GST Rebate, you must:
- Be at least 18 years of age
- Be a Canadian citizen or permanent resident
- Not have lived in a home you or your spouse or common-law partner owned as a primary residence in the calendar year of purchase or in any of the previous four calendar years
- Be purchasing a newly constructed or substantially renovated home as your primary residence, where you will be the first occupant
- Have not previously claimed this rebate in your lifetime
It is the four-year look back that catches many people off guard. As an example: A buyer who sold their home in 2022, rented for three years, and purchased a new build in early 2026 would not qualify — because 2022 still falls within the four-year look back window.
Your spouse or common-law partner’s ownership history also counts. If your partner owned a principal residence within those four years, your eligibility may be affected even if you personally have never owned property.
What happens if you closed before the law passed?
If you signed your purchase agreement on or after March 31, 2025, but took possession before Royal Assent was granted on March 31, 2026, you can still claim the rebate — but it requires an extra step.
Because the legislation was not yet in force at the time of your closing, your builder could not have credited the rebate on your statement of adjustments. You will need to pay — or have already paid — the full GST or HST to the builder, then apply directly to the CRA to receive your rebate retroactively. CRA forms for the enhanced rebate are being finalized now; watch for updated guidance on the CRA website and in Publication RC4028.
Be aware there is a time limit — generally two years from taking ownership or finishing construction — to file your claim. Missing that window means forfeiting the rebate entirely.
What to confirm before you sign
If you are considering a newly built home, verify the following before committing:
- Your agreement of purchase and sale will be dated on or after March 31, 2025
- Neither you nor your spouse or common-law partner has owned a primary residence in the current calendar year or the previous four calendar years
- The home is newly constructed or substantially renovated — not a resale property
- The home will be your principal place of residence, and you will be its first occupant
- You are a Canadian citizen or permanent resident, aged 18 or older
- You have not previously claimed this rebate
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If you are buying in Ontario, confirm the status of the provincial HST rebate legislation before factoring $130,000 in combined savings into your financial planning. Work with your real estate lawyer and a tax advisor to ensure every condition is met — and that you don’t miss the CRA filing window after closing.
Final thoughts
The rebate is one of the largest direct tax relief measures for first-time buyers in Canadian history, with the federal government projecting $3.9 billion in savings over five years. But those savings only flow to buyers who meet every condition — and apply before the clock runs out.
The Canada Revenue Agency (CRA) is now accepting applications for the new FTHB GST/HST rebate. The savings are real and significant — but so are the ways to miss out on this money back (3).
Editor’s Note – March 31, 2026: This article has been updated to correct the eligibility cutoff date for the FTHB GST Rebate (March 31, 2025, not May 27, 2025) and to clarify that Ontario’s provincial HST rebate has been announced but has not yet received Royal Assent.
