What You Need to Know in 2026
First-time home buyers in Canada now have access to a new financial incentive aimed at improving affordability.
As of March 17, 2026, the Canada Revenue Agency (CRA) has officially begun accepting applications for the First-Time Home Buyers (FTHB) GST/HST rebate — a program designed to reduce the upfront cost of purchasing or building a new home.
What Does the Rebate Offer?
The FTHB GST/HST rebate allows eligible buyers to recover:
-
Up to 100% of the GST or the federal portion of HST
-
A maximum rebate of $50,000
Here’s how it works:
-
Homes priced at $1 million or less
→ Eligible for a full rebate of the federal sales tax -
Homes between $1 million and $1.5 million
→ Rebate is gradually reduced -
Homes $1.5 million and above
→ Not eligible
This structure helps reduce closing costs and improves affordability — especially for buyers entering the market for the first time.
Which Properties Qualify?
The rebate applies to:
-
Newly built homes
-
Substantially renovated homes
👉 The property must be intended as your primary residence
How to Apply
The application process depends on how the home is purchased:
✔️ Buying from a builder
In many cases, the rebate may be applied directly at closing, reducing the purchase price upfront. Builders often handle the submission process.
✔️ Building your own home
You can apply directly through your CRA account or submit the required forms.
⏳ Important:
Applications must generally be submitted within two years of taking ownership or completing construction.
Who Is Eligible?
To qualify as a first-time home buyer, you must:
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Be at least 18 years old
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Be a Canadian citizen or permanent resident
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Not have owned and lived in a home as your primary residence in the past four years
Additional requirements:
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The rebate is available to individuals only (not corporations)
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At least one buyer must meet the eligibility criteria
-
The home must be used as a primary residence
What This Means for Buyers
This rebate is a meaningful step toward improving affordability in today’s market.
By reducing the tax burden on new homes, buyers can:
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Lower upfront costs
-
Improve cash flow at closing
-
Access opportunities that may have previously been out of reach
What This Means for the Market
For new-construction homes, this program provides an additional incentive for first-time buyers.
In higher-priced markets like the GTA, where affordability remains a challenge, this rebate may:
-
Increase demand for new builds
-
Provide more flexibility for buyers entering the market
-
Support overall housing activity
Final Thoughts
While this rebate does not solve affordability entirely, it is a practical tool that can make a real difference — especially when paired with the right buying strategy.
If you’re considering purchasing your first home and want to understand how this program applies to your situation, we’re here to help.
📩 Reach out to our team for personalized guidance.
— The Fisher Group
