GST/HST New Housing Rebate 2026: Up to $50,000 Back for First-Time Buyers
By Jordan Ellis · Published · Reviewed
Quick Answer
Two rebates stack on new-build homes in Canada. The long-standing GST New Housing Rebate returns 36% of the federal GST (max $6,300) on homes up to $350,000, phasing out at $450,000. The new First-Time Home Buyers' GST Rebate — for purchase agreements signed on or after May 27, 2025 — returns 100% of the GST on new homes priced up to $1 million (up to $50,000), phasing out linearly to $1.5 million. In Ontario, provincial HST rebates add up to $24,000, or up to $80,000 under the enhanced new housing rebate for agreements signed from April 1, 2026 to March 31, 2027. In most pre-construction deals the rebate is assigned to the builder and comes off the price at closing.
New-build prices in Canada quietly include 5% GST (or 13% HST in Ontario). Two federal rebates — plus provincial ones — hand a chunk of that back. Budget for it alongside your closing costs and land transfer tax.
The three rebates, side by side
| Rebate | Worth | Price window | Who |
|---|---|---|---|
| GST New Housing Rebate (original) | 36% of GST, max $6,300 | Full to $350k, gone at $450k | Any buyer of a new primary residence |
| FTHB GST Rebate (agreements on/after May 27, 2025) | 100% of GST, max $50,000 | Full to $1M, linear phase-out to $1.5M | First-time buyers, primary residence |
| Ontario New Housing Rebate | 75% of provincial HST, max $24,000 | No price cap | Any buyer of a new primary residence in ON |
A first-time buyer of a $900,000 new condo in Ontario: $45,000 federal FTHB rebate, plus up to $72,000 of provincial HST relief if the agreement was signed between April 1, 2026 and March 31, 2027 (otherwise the standard $24,000). Provincial rules can reduce one rebate by another, so confirm the exact amounts with your builder and CRA’s rebate pages. That is real money against a down payment — pair it with the FHSA and the other first-time buyer programs and the stack gets serious.
The fine print that matters
- Primary residence only. Investors use the separate New Residential Rental Property Rebate — different form, different rules.
- One rebate per home. The original GST rebate and the FTHB rebate don’t stack; the FTHB version wins at every price where both apply.
- Usually assigned to the builder. In pre-construction agreements you typically sign the rebate over at closing and pay the net price. Read the adjustment schedule — you want the rebate you qualify for credited, not the one the builder assumes.
- First-time buyer test looks back 4 years. If you or your spouse owned and lived in a home during that window, you’re out — same test as the Home Buyers’ Plan.
- Substantially renovated and owner-built homes count, but the paperwork burden shifts to you: keep every invoice.
What to do at the offer stage
Ask three questions before signing a new-build agreement: which rebates are being assigned to the builder, at what assumed value, and what happens if you qualify for the FTHB rebate but the agreement assumed the smaller original one. Then model the net price — rebates included — through the land transfer tax calculator and your full closing cost budget so the number on closing day holds no surprises.
Official sources
Rules and dollar limits change. Confirm current amounts with the official pages below before you act · Last reviewed .
- GST/HST new housing rebate (Guide RC4028) (Canada Revenue Agency)
- First-time home buyers' GST/HST rebate (Canada Revenue Agency)