What Is It
This proposed rebate is designed to effectively eliminate the GST (or the federal portion of the HST) for eligible first-time home buyers purchasing a newly built or substantially renovated home for use as their primary place of residence. It's not available yet. Check out the OFFICIAL CRA WEBSITE.
What You Get
The amount of the rebate is entirely dependent on the home's value:
Up to $1 million: The rebate would cover up to 100% of the GST/federal HST paid, with a maximum rebate of $50,000.
Between $1 million and $1.5 million: The maximum rebate is gradually reduced. (A $1.25 million home, for example, would qualify for 50% of the maximum, or $25,000).
At or above $1.5 million: You get absolutely nothing.
Eligibility Requirements
To be considered eligible, you must satisfy the conditions for both the home and the buyer:
1. The Buyer: You must meet all of the following criteria:
Be at least 18 years of age.
Be a Canadian citizen or permanent resident.
You (or your spouse/common-law partner) must not have lived in a home you owned as a primary residence at any time in the calendar year or the previous four calendar years. (If you take ownership in 2025, you must not have owned a primary residence between 2021 and 2025.)
Neither you nor your spouse/partner have previously received this FTHB GST/HST rebate.
2. The Purchase (The Timeline): The purchase must fall within a very specific window:
The agreement of purchase and sale must be entered into after May 26, 2025 (i.e., on or after May 27, 2025), and before 2031.
Construction/substantial renovation must begin before 2031 and be substantially completed before 2036.
Ownership must be transferred to you before 2036.
How to Apply (Spoiler: You Can't Yet)
Currently, the CRA is not processing claims. Once the legislation passes:
If you purchase a home and ownership transfers before Royal Assent: You will have to pay the full GST/HST to the builder and then apply directly to the CRA for the rebate later. The builder cannot credit you this specific rebate in advance.
New forms (like GST190, GST191) will be updated to include this rebate after the legislation passes.
Disclaimer: This information is pulled directly from the Canada Revenue Agency (CRA) website and is for informational purposes only. For specific advice on your situation, please consult a qualified tax professional.