Discover the Benefits of Canada’s New First-Time Home Buyer GST Rebate Program
March 2026 – This article has been updated to reflect recent federal confirmation of the First‑Time Home Buyer GST Rebate and how it now applies to eligible buyers.
As of March 12, 2026, Canada’s First‑Time Home Buyer GST Rebate has officially launched – opening the door to meaningful savings on qualifying new homes purchased after May 27, 2025.
What First‑Time Buyers Need to Know
The First‑Time Home Buyer GST Rebate was announced in the spring of 2025, but recent federal updates have now confirmed how the program works and when it applies. Eligible first‑time buyers can receive up to $50,000 in GST savings when purchasing a qualifying new construction home.
The rebate applies to new homes priced up to $1 million, is gradually phased out on homes priced between $1 million and $1.5 million, and is available nationwide — including here in Alberta. The program is designed to reduce the upfront cost of homeownership and make buying your first home more attainable.
Frequently Asked Questions About the First‑Time Home Buyer GST Rebate
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What is the First‑Time Home Buyer GST Rebate?
It’s a federal program that reduces or removes GST on eligible new homes purchased by first‑time buyers.
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How much can first‑time buyers save?
Eligible buyers may receive up to $50,000 in GST savings, depending on the purchase price of the home.
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Who qualifies as a first-time homebuyer?
Generally, to be considered a first-time home buyer, all of the following must be true:
- You are at least 18 years of age
- You are a Canadian citizen or permanent resident of Canada
- You have not lived in a home that you or your spouse or common-law partner owned, or jointly owned, whether in or outside of Canada, as your primary place of residence at any time in the calendar year or in the previous four calendar years
- Neither you, nor your spouse or common-law partner, have previously received an FTHB GST/HST rebate
Check the federal program for more details.
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Does the GST rebate apply in Alberta?
Yes. The rebate applies nationwide, including Alberta, for qualifying first-time homebuyers purchasing new homes after May 27, 2025.
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Will Cantiro apply the GST rebate directly, or do I apply myself?
Yes. For eligible buyers, Cantiro will apply the GST rebate directly to the purchase price and submit the rebate application to the Canada Revenue Agency (CRA) on the buyer’s behalf.
At closing, buyers will complete the required documentation to allow Cantiro to apply the rebate, which means the GST does not need to be paid upfront. Eligibility is subject to CRA requirements and confirmation at closing.
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Why did buyers hear about this rebate in Spring 2025 but only see updates now?
The program was announced last year, but buyers were waiting for confirmation and implementation details, which were clarified in the most recent update.
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I bought a newly built home in the past year and paid GST. Do I need to apply for the GST rebate myself?
If you purchased a newly built home within the past year, paid GST at the time of purchase, and you believe you fit the qualification criteria, you may need to apply for the GST rebate directly through the Canada Revenue Agency (CRA).
For homes purchased from a builder where the GST was paid, the CRA requires buyers to submit the rebate using Application type 2. Eligibility and approval are determined by the CRA.
If the GST rebate was already applied directly by the builder at closing, no further action is required.
Buyers can review eligibility details and access the application form on the CRA website.
What Is the First‑Time Home Buyer GST Rebate?
The First‑Time Home Buyer GST Rebate is a federal program designed to reduce the cost of buying a newly constructed home by offering a rebate on the Goods and Services Tax (GST) for eligible first‑time home buyers.
The program applies to the same types of housing and follows similar eligibility criteria and conditions as the existing GST/HST New Housing Rebate, with certain modifications to ensure that the rebate is targeted at first‑time buyers and eligible buyers may receive up to $50,000 in GST savings
It is intended to help first‑time buyers overcome upfront affordability challenges and move more confidently into homeownership.
Who Qualifies for the First‑Time Home Buyer GST Rebate?
To qualify for the First-Time Home Buyer GST Rebate Program, buyers must meet specific federal eligibility criteria when purchasing a newly constructed home.
In general, you may qualify if:
- You are at least 18 years old and are a Canadian citizen or permanent resident
- You are a first‑time home buyer, meaning you — and your spouse or common‑law partner — have not owned and lived in a home within the required federal look‑back period
- You are purchasing a newly built or substantially renovated home for use as your primary residence
- The agreement of purchase and sale is entered into with the builder on or after May 27, 2025
Eligibility is determined at the federal level, and not all buyers will qualify. Buyers are responsible for confirming how the rebate applies to their individual situation based on purchase timing, ownership history, and home type. For full eligibility rules and application details, refer to the Government of Canada’s official guidance.
How Much Is the GST Rebate for First‑Time Home Buyers?
The amount of GST rebate depends on the purchase price of the home:
- Homes up to $1 million
Eligible buyers may receive a full GST rebate - Homes between $1 million and $1.5 million
Eligible buyers may receive a partial GST rebate, gradually reduced as prices increase - Homes over $1.5 million
Not eligible for the first‑time home buyer GST rebate
In most cases, the rebate is applied by the builder at purchase, with the builder submitting the rebate to CRA on the buyer’s behalf. For many buyers, this represents meaningful savings that can help reduce the overall cost of homeownership.
For your convenience, here is a reference chart:
Why the First‑Time Home Buyer GST Rebate Matters
Beyond the immediate tax savings, the First‑Time Home Buyer GST Rebate plays an important role in helping buyers move forward with confidence.
Key benefits include:
- Lower upfront costs – By reducing or eliminating GST on eligible new homes, the rebate lowers the overall cost of purchase — which can help buyers manage closing costs, preserve savings, or strengthen their financial position when buying their first home.
- Greater affordability for first‑time buyers – The rebate is specifically designed to support first‑time buyers, helping bridge the gap between rising home prices and affordability, especially for newly built homes.
- Increased confidence to enter the market – When combined with other first‑time home buyer programs, the GST rebate gives buyers clearer financial expectations and reduces uncertainty — making it easier to take the next step toward homeownership.
Does the GST Rebate Apply to New Homes Only?
Yes. The First‑Time Home Buyer GST Rebate applies only to newly built homes, including:
- Homes purchased directly from a builder
- Certain new homes built on leased land
Resale homes are not eligible.
Estimate What You Can Afford
Before buying, it’s important to understand your budget and financing options.
Cantiro offers mortgage and affordability calculators to help you estimate:
- Purchase price ranges
- Monthly payments
- How incentives like the GST rebate may impact affordability
How the GST Rebate Works Alongside Other First‑Time Buyer Programs
The GST rebate is one part of a broader set of programs designed to support first‑time buyers.
You may also want to explore:
- Click here to explore other first‑time home buyer programs, incentives, and grants
- Click here for a step‑by‑step guide to buying your first home, from budgeting to possession
- Click here for Cantiro’s Down Payment Savings Program, designed to help buyers save more efficiently
Together, these programs can significantly improve affordability and confidence for first‑time buyers.
next steps
Applying for the First-Time Home Buyer GST Rebate Program involves several steps:
- Determine eligibility by reviewing the program criteria.
- Contact an Area Sales Manager to begin the process and explore eligible Cantiro homes.