NEW FOR 2026 · MORTGAGE BASICS

The First-Time Home Buyers' GST/HST Rebate, Explained

It just became law. Bill C-4 received Royal Assent on March 12, 2026, and the CRA is now accepting applications. For qualifying first-time buyers of a new-build home, it's worth up to $50,000 — the entire 5% GST (or federal portion of HST) on a home priced at $1,000,000 or less, with a sliding scale up to $1.5M. Here's what it does, who qualifies, and what it actually means for buyers in Nova Scotia, New Brunswick, PEI, Alberta, and BC.

Educational only — not tax advice. Confirm your specific numbers with an accountant or the CRA. Rahul can help you identify whether a purchase looks eligible, but doesn't file tax rebates.

Quick facts

The whole rebate in one glance

Maximum rebate: Up to $50,000
Full rebate: Homes ≤ $1,000,000
Sliding scale: $1M – $1.5M
Above $1.5M: No rebate
Eligible homes: New builds & substantial renovations only
Purchase signed: On/after March 20, 2025

Are you a first-time buyer under this rebate?

The CRA's definition of "first-time buyer" for this specific rebate is stricter than most people expect. All of the following must be true:

You are at least 18 years old.
You are a Canadian citizen or permanent resident.
Neither you nor your spouse/common-law partner has lived in a home that either of you owned or jointly owned — anywhere in the world — as a primary residence in the current calendar year or the previous four calendar years.
Neither you nor your spouse/common-law partner has previously received this First-Time Home Buyers' GST/HST rebate.
You are the first person to occupy the home as a residence after construction or substantial renovation is complete.

Heads up: the four-calendar-year lookback applies to both you and your spouse or common-law partner. If only one of you owned a home in that window, neither of you qualifies as a first-time buyer for this rebate.

The "calendar year" test date depends on how you acquire the home: the date ownership transfers (builder purchase), the date possession transfers (leased-land purchase), the earlier of first occupancy or substantial completion (owner-built), or the date the co-op share transfers (co-op purchase).

How much is it actually worth?

The rebate scales with the price of the home. Three tiers, one worked example:

Tier 1

Home ≤ $1,000,000

100% of the 5% GST (or federal portion of HST) rebated — up to the full $50,000 maximum.

Tier 2

$1,000,000 – $1,500,000

Sliding scale — the rebate phases out linearly across this range as the price approaches $1.5M.

Tier 3

Home ≥ $1,500,000

No rebate at all. The relief cuts off entirely at the $1.5M mark.

Worked example

A new build priced at $1,250,000 sits exactly halfway between $1M and $1.5M. It qualifies for 50% of the maximum rebate — that's $25,000 back on the federal GST/HST portion.

New build only — here's what qualifies

The rebate is limited to buying or building something new. Three paths qualify:

A newly built or substantially renovated home purchased from a builder — including on leased land with a lease of 20+ years or a purchase option.
A home you build yourself, or hire someone else to build or substantially renovate, for use as your primary residence.
A share in a co-operative housing corporation for a newly built or substantially renovated co-op unit.

Watch out: resale homes — anything previously lived in — do not qualify for this rebate at all. If you're buying an existing home from a private seller, this rebate is not part of your file.

Timing window: for builder purchases, the agreement of purchase and sale must be signed on or after March 20, 2025 and before 2031. For owner-built homes, construction or substantial renovation must begin on or after March 20, 2025 and before 2031. Construction must be substantially completed before 2036.

What this actually means in Nova Scotia, New Brunswick, PEI, Alberta & BC

The federal rebate relieves only the GST — or the 5% federal portion of HST. It does not touch the provincial portion. That matters differently depending on where you're buying:

Nova Scotia · New Brunswick · PEI

15% HST — only 5% is federal

Each of NS, NB, and PEI charges 15% HST (5% federal + 10% provincial). This rebate relieves the 5% federal portion. The 10% provincial portion still applies — currently, none of these three provinces has an equivalent provincial rebate.

Alberta · British Columbia

GST only — the whole story

Alberta has no provincial sales tax, so the 5% GST is the entire sales-tax bill on a new home. BC charges 5% GST (its PST doesn't apply to new-home purchases the same way). In both provinces, this rebate covers the full federal amount you'd otherwise owe.

For contrast: Ontario proposed its own separate top-up rebate for the provincial portion in its March 26, 2026 budget, but it isn't finalized yet — and it's Ontario-only. NS, NB, and PEI currently have no equivalent provincial top-up.

It stacks

A top-up to the existing GST/HST New Housing Rebate — not a replacement

Canada already has a general GST/HST New Housing Rebate for buyers of new-build primary residences. This new First-Time Home Buyers' rebate sits on top of it — eligible first-time buyers may be able to claim both, stacked together, for the largest possible reduction in the federal portion of tax on the purchase.

Frequently asked

Does this rebate apply to resale homes?

No. The First-Time Home Buyers' GST/HST rebate only applies to newly built or substantially renovated homes purchased from a builder, homes you build (or hire someone to build) for yourself, and shares in a co-operative housing corporation for a newly built or substantially renovated co-op unit. Previously-lived-in resale homes do not qualify at all.

Can my spouse and I both claim it?

The rebate is assessed at the household level. If either you or your spouse/common-law partner has lived in a home that either of you owned (in Canada or abroad) as a primary residence at any time in the current calendar year or the previous four calendar years, neither of you qualifies as a first-time home buyer for this rebate. Neither of you can have previously received the rebate.

Do I get the full 15% HST back in Nova Scotia?

No. The federal rebate only relieves the 5% federal portion of HST. The 10% provincial portion of Nova Scotia's 15% HST still applies, and there is currently no equivalent Nova Scotia rebate. The same is true in New Brunswick and PEI, which also charge 15% HST.

How do I actually get the money?

Two ways. The builder can credit the rebate to you directly at closing, so you finance a lower amount. Or you can apply directly to the CRA yourself after taking possession — generally within two years of possession (or substantial completion, for owner-built homes).

Educational only — not tax advice. Rebate rules, phase-out math, and provincial treatment can change. Confirm the specific numbers for your purchase with a licensed accountant or directly with the CRA before you rely on them. Rahul can help you identify whether a purchase looks eligible; he doesn't file tax rebates.

How to actually claim it

There are two normal paths, and you generally have two years from taking possession (or from substantial completion, for owner-built homes) to apply:

Builder credits the rebate directly at closing — you finance a smaller amount and don't have to wait for the CRA.
You apply directly to the CRA after possession, using the CRA's application form and supporting documents.

Buying new construction? Let's see what you'd actually qualify for.

Send Rahul the basics — purchase price, closing date, whether it's a builder deal or you're building yourself — and he'll flag whether this rebate looks in-scope for your file and how it changes the money you'll need at closing. Fifteen minutes, no pitch.

Book a free call with Rahul Call or text Rahul

902-223-8003 · NS Broker #2025-3000996 · Licensed in NS, NB, AB & BC