Cost- A GST/HST rebate targeted at first-time buyers purchasing new-construction homes is now claimed under the existing federal new housing rebate framework.
- It's layered on top of the pre-existing GST/HST New Housing Rebate that's applied to new builds generally.
- Eligibility follows the same first-time buyer definition used elsewhere federally: no home ownership in the current or prior four calendar years.
What the rebate covers
New home construction in Canada is subject to GST (or the federal portion of HST) on the purchase price, unlike resale homes, which aren't taxed on sale. This new measure adds a rebate specifically for first-time buyers on top of the rebate framework that already existed for new builds generally, reducing the effective tax first-time buyers pay when buying new construction directly from a builder.
How it stacks with the existing New Housing Rebate
Canada has long had a GST/HST New Housing Rebate available to any buyer of a new or substantially renovated home, which partially refunds the GST paid, phased out above certain price thresholds. This first-time-buyer-specific measure is layered on top of that existing rebate rather than replacing it, meaning an eligible first-time buyer can claim both — the general new housing rebate everyone can access, plus the additional first-time buyer portion. That existing general rebate partially refunds GST on new builds up to a price ceiling, phasing out entirely above it.
Who qualifies
Eligibility follows the same first-time buyer test used across most federal home-buying programs: you (and your spouse or common-law partner, if applicable) must not have owned and lived in a home as your principal residence in the current calendar year or the four preceding ones. The home must be new construction — a resale home doesn't qualify for this measure regardless of whether you're a first-time buyer, since the underlying issue this rebate addresses (GST charged on the sale) only applies to new builds in the first place.
This measure is dated and its exact thresholds are worth confirming directly with the Department of Finance or the CRA before relying on it for a specific purchase, since new housing programs are sometimes adjusted after introduction. See our FHSA vs. RRSP HBP guide for how this fits alongside the other federal first-time buyer programs.
- Department of Finance Canada — accessed September 2026
- CMHC — accessed September 2026