A new federal initiative is making it easier for first-time buyers to enter the housing market. The Government of Canada has passed Bill C-4, introducing a GST rebate for first-time home buyers purchasing newly built homes.
In Ontario, the Government of Ontario is matching the program by covering the provincial portion of the HST, meaning eligible buyers could receive relief covering the full sales tax on qualifying new home purchases. This initiative is designed to reduce the upfront cost of buying a home and improve affordability for buyers entering the market.
Eligible first-time buyers may receive:
• A full GST/HST rebate on newly built homes valued up to $1 million
• A partial rebate for homes priced between $1 million and $1.5 million
• No rebate for homes priced above $1.5 million
The maximum rebate available is up to $130,000.
The rebate applies to:
✔ Newly built homes purchased from a builder
✔ Owner-built homes
✔ Shares in a co-operative housing corporation
To be eligible, buyers must:
• Be at least 18 years old
• Be a Canadian citizen or permanent resident
• Not have owned a home in the past four years (in Canada or abroad)
• Purchase the home as their primary residence
• Not have previously received a first-time buyer GST/HST rebate
To qualify:
✔ The Agreement of Purchase and Sale must be signed between May 27, 2025 and before 2031
✔ The home must be substantially completed before 2036
Applications are submitted through the ***Canada Revenue Agency once construction of the home is completed. Attached below, you will find the links for Eligibility for GST/HST Rebate and How to Apply.
For buyers looking to purchase a newly built home in areas like Brampton or the GTA, this rebate could significantly reduce upfront costs and make homeownership more accessible. Understanding available programs and incentives can make a major difference when entering the housing market.
If you’re considering buying a home in the GTA, visit my website to:
If you have questions about the market or are thinking about buying or selling a home in the GTA, feel free to contact me- I’m always happy to help!
***Canada Revenue Agency Links : How to Apply and First Time Home Buyer GST/HST Rebate
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