In March of 2026, the federal government passed legislation increasing the maximum GST/HST rebate available to first-time home buyers from $6,300.00 to $50,000.00, effectively covering the entire GST/HST cost on certain eligible homes. This change is part of amendments to the Excise Tax Act and applies to newly built or substantially renovated homes.
The rebate of up to $50,000.00 applies to homes with a purchase price of less than $1 million. For homes purchased between $1 million and $1.5 million, a partial rebate is available. Homes that are purchased for over $1.5 million are not eligible for this rebate.
Although the legislation was passed in 2026, the GST/HST rebate retroactively applies to eligible purchase contracts that were signed on or after March 20, 2025. It will continue to apply to eligible contracts signed before 2031, with the stipulation that construction must be substantially completed before 2036.
In most cases, an individual will qualify as a first-time home buyer if:
- They are at least 18 years old;
- They are a Canadian citizen or permanent resident;
- The home will be their primary residence;
- Neither they, nor their spouse or common-law partner, have owned property that they used as their primary residence in the current or previous four calendar years; and
- Neither they, nor their spouse or common-law partner, have previously received a First Time Home Buyers’ GST/HST rebate.
Anyone thinking about purchasing a newly built or substantially renovated home should make sure they understand how the rebate works before signing a contract, since small details can affect whether the rebate is available. If you have questions about the GST/HST rebate, please contact one of our real estate lawyers who will be able to assist.
This post is current as of March 2026.
By: Shazia Hosenbocus