New GST Rebate for FirstTime Home Buyers: What You Need to Know

Jul 6

Canada’s housing landscape is shifting again — and this time, first-time home buyers are getting a meaningful boost. In March 2026, Bill C-4 received Royal Assent, introducing a new GST rebate designed to make newly built homes more affordable for Canadians entering the market for the first time.

Below is a r breakdown of how the new rebate works, who generally qualifies, and what this means for buyers and builders.

What the New GST Rebate Offers

The legislation expands federal housing tax relief by eliminating or reducing GST on newly built homes purchased by first-time buyers. Here’s how the rebate is structured:

Full GST Rebate — 100% rebate (up to $50,000) for new homes priced under $1 million.
Partial Rebate — Applies to homes priced between $1 million and $1.5 million. The rebate decreases by 20% for every $100,000, with a maximum rebate of $10,000.
No Rebate — Homes priced over $1.5 million do not qualify.

Importantly, this new rebate stacks with the existing GST New Housing Rebate, meaning eligible buyers may receive both. The new rebate acts as a top-up to the existing program.

What Types of Homes Qualify?

To be eligible, the property must meet specific criteria:

Newly Constructed Homes
Substantially Renovated Homes

Key Dates to Remember

The rebate applies to Agreements of Purchase and Sale:

Entered on or after March 20, 2025
Before 2031

If your agreement falls within this window, you may be eligible.

Who Can Claim the Rebate?

This program is specifically for first-time home buyers. Buyers must meet all eligibility requirements, including residency and property-use rules. Corporations or partnerships do not qualify only named individuals may apply.

How We Help at Khokhar Law Group

At Khokhar Law Group, we work closely with both builders and first-time home buyers. Our team helps clients navigate purchase agreements and maximize available rebates.

If you are a first-time home buyer or a builder, please reach out to our office as we are here to guide our clients through every step!

—Stefanie Reece
Khokhar Law Group