First-time Home Buyers' GST/HST Rebate - Keynotes
The First-Time Home Buyers’ (FTHB) GST/HST rebate provides eligible first-time home buyers with relief from GST or the federal portion of HST when purchasing or building a new home.
Key Eligibility Requirements
Construction or substantial renovation must begin on or after March 20, 2025, and before 2031.
The home must be substantially completed, and the individual must occupy it as their place of residence, before 2036.
The buyer must qualify as a first-time home buyer at the applicable eligibility date.
Individuals who have already received the rebate, or whose spouse or common-law partner has received it, generally cannot claim it again.
Owner-Built Homes
The rebate is available for eligible owner-built homes with a fair market value below $1.5 million.
The rebate amount is calculated based on the GST or federal portion of HST paid, the home's fair market value, and any other applicable new housing rebate.
No rebate is available for owner-built homes valued at $1.5 million or more.
When Construction or Renovation Begins
New construction: Generally begins when excavation starts.
Substantial renovations: Generally begin when physical alteration or demolition work starts.
Activities such as signing contracts, obtaining permits, preparing plans, or conducting site testing do not count as the start date.
Purchase Agreements and Restrictions
Agreements of purchase and sale entered into before March 20, 2025, are generally ineligible, even if they are later amended or assigned.
Cancelling an earlier agreement and entering into a new one does not automatically qualify a buyer. Certain transactions intended primarily to obtain the rebate may be treated as pre-March 20, 2025 agreements.
Genuine cancellations for other reasons, such as a builder's insolvency, may qualify for different treatment.
How to Apply
Eligible applicants must complete the appropriate CRA form:
Form GST190: Homes purchased from a builder.
Form GST191: Owner-built homes.
Applications generally must be filed within two years of the applicable ownership transfer, possession, occupancy, or substantial completion date, depending on the property type.
Builder-Paid Rebates
For eligible homes purchased from a builder, the builder may pay or credit the rebate to the buyer with the buyer's agreement. Both parties must complete the applicable documentation. The builder and buyer may be jointly responsible for repaying an incorrect rebate if the builder knew, or should have known, the buyer was ineligible.
Important: Eligibility and rebate amounts depend on the type of property, its value, the purchase agreement date, and the buyer's circumstances. Reach out to our office for a full overview of your eligibility to claim the rebate!