First-time home buyers now have access to a new financial incentive, as the Canada Revenue Agency (CRA) begins accepting applications for the First-Time Home Buyers (FTHB) GST/HST rebate as of March 17th. Originally proposed during the 2025 election season, the tax program is now officially in place, helping more Canadians step into home ownership.

What the rebate offers

The FTHB GST/HST rebate is designed to help offset the cost of purchasing or building a new home by reducing the amount of tax paid upfront. It is one of several affordability measures introduced under Bill C-4, the Making Life More Affordable for Canadians Act, which received royal assent in March 2026.

Eligible buyers can recover up to 100% of the GST, or the federal portion of the HST, on qualifying homes, with a maximum rebate of $50,000. For homes valued at $1 million or less, the rebate can fully eliminate the federal sales tax. For homes priced between $1 million and $1.5 million, the rebate is gradually reduced, with no rebate available for properties at or above $1.5 million.

This sliding scale means buyers can still benefit from meaningful savings even as purchase prices increase, helping to ease closing costs in higher-priced markets.

The rebate applies to newly constructed or substantially renovated homes intended to be used as a primary residence and is available to individuals who meet the program’s eligibility requirements.

How the application process works

The rebate can be applied for in different ways, depending on how the home was acquired. Buyers who purchase a home from a builder may see the rebate credited directly at closing, reducing the total purchase price upfront. In these cases, builders handle much of the application process by submitting the required documentation through their CRA accounts.

For those who build their own home, the process is more direct. Eligible homeowners can apply through their CRA account or submit the appropriate form to claim the rebate. This applies to homes where construction began on or after March 20th, 2025.

Timing is important. In most cases, applicants must submit their rebate request within two years of taking ownership or completing construction.

Eligibility requirements to know

To qualify, buyers must meet the definition of a first-time home buyer. This generally means being at least 18 years old, a Canadian citizen or permanent resident, and not having owned and lived in a home as a primary residence within the past four years.

The rebate is only available to individuals, not corporations or partnerships, and at least one owner of the home must meet the first-time buyer criteria. That individual must also intend to use the home as their primary residence and be the first to occupy it after construction or renovation is complete.

What this means for new construction builders

With applications now open, this rebate introduces a new layer of support for first-time buyers navigating today’s housing market. By reducing the tax burden on new homes, it helps make ownership more attainable at a time when many are feeling priced out.

For builders, the program creates an added incentive that can be built directly into the transaction, offering more flexibility and appeal for eligible buyers looking at newly constructed homes.

Want to know more about the FTHB GST/HST rebate? Visit the CRA’s website for full details.