- The federal first-time home buyers' rebate is up to $50,000 on a new or substantially renovated home.
- You must be at least 18, a Canadian citizen or permanent resident, and meet the ownership-history tests.
- Ontario's rebate gives back up to $80,000 of the provincial part of the HST and follows the federal conditions.
Buying a new or substantially renovated home brings GST/HST into the price. Rebates can return a large part of that tax, but only if you meet the conditions.
This article covers the first-time home buyers' rebates that apply to Ontario buyers. Other rebates and the exact tax on your contract depend on your facts, so confirm them with a lawyer or accountant.
How GST/HST fits into a new home purchase
GST/HST can apply when you buy a new or substantially renovated home. In Ontario the tax has a federal part and a provincial part, and there are separate rebates for each.
Your purchase agreement should show whether the price includes the tax and whether a rebate will be assigned to the builder or claimed by you. Read that clause before you sign.
The federal first-time home buyers' rebate
The federal rebate is up to $50,000. It is a full rebate of the GST, or the federal part of the HST, on a new or substantially renovated home valued up to $1 million.
The rebate is reduced for homes between $1 million and $1.5 million, and it is nil at $1.5 million or more. For example, a $1.25 million home gets $25,000.
| Home value | Federal rebate |
|---|---|
| Up to $1 million | Full rebate, up to $50,000 |
| Between $1 million and $1.5 million | Reduced |
| $1.5 million or more | Nil |
Who can claim it
You must be at least 18 and a Canadian citizen or permanent resident. You must not have lived in a home owned by you or your spouse or common-law partner in the calendar year or the previous four calendar years. Neither of you can have received the rebate before.
For a home bought from a builder, the agreement must be signed on or after March 20, 2025 and before 2031, and the home must be substantially completed before 2036. If your agreement was signed earlier, ask a lawyer whether any other rebate fits.
- Age and status: at least 18, and a citizen or permanent resident.
- Home history: no home owned by you or your partner that you lived in during the calendar year or previous four calendar years.
- No earlier rebate for you or your spouse or common-law partner.
- Builder purchases: agreement date and completion date limits.
The Ontario first-time home buyers' rebate
Ontario's rebate gives back up to $80,000 of the provincial part of the HST on a first home bought, built or substantially renovated in Ontario. It follows the federal eligibility conditions.
Because it relies on the federal rules, the status of the Ontario rebate can change. Confirm that it is in force on your agreement date before you count on it in your budget.
This is separate from Ontario's land transfer tax refund for first-time buyers, which has its own conditions.
What to do next
- Check the date on your purchase agreement against the builder-purchase dates.
- List every home you or your spouse or common-law partner owned and lived in over the last five calendar years.
- Confirm the home's value and whether it is new or substantially renovated.
- Ask the builder how the rebate will be handled in the agreement and at closing.
- Have a lawyer review the agreement before you sign.
Frequently asked questions
How much is the federal rebate?
It is up to $50,000, a full rebate of the GST or federal part of the HST on a new or substantially renovated home valued up to $1 million. It is reduced between $1 million and $1.5 million and nil at $1.5 million or more.
Does my spouse's past home ownership matter?
Yes. You must not have lived in a home owned by you or your spouse or common-law partner in the calendar year or the previous four calendar years. Neither of you can have received the rebate before.
Is there an Ontario rebate as well?
Yes. Ontario gives back up to $80,000 of the provincial part of the HST on a first home bought, built or substantially renovated in Ontario. It follows the federal eligibility conditions.
Can a non-citizen claim the rebate?
You must be a Canadian citizen or permanent resident to claim the federal rebate. If your status is unclear, get advice before you sign.
Sources
- CRA – What is the first-time home buyers' rebate — canada.ca
- CRA – FTHB GST/HST rebate: Who can apply — canada.ca
- CRA – First-time home buyers' (FTHB) GST/HST rebate — canada.ca
Links go to official government, court and regulator pages. The law changes — confirm you are reading the current version.
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