FTHB GST Rebate : Get Up to $50,000 Back
First-Time Home Buyer GST Rebate: Get Up to $50,000 Back
Buying your first home is a major milestone—and a new federal program may help reduce the tax cost of purchasing a newly built home. The First-Time Home Buyer GST Rebate allows eligible buyers to recover some or all of the 5% Goods and Services Tax (GST) paid on a qualifying new home. This rebate can be worth up to $50,000, depending on the purchase price of the home.
Understanding how the program works can help first-time buyers plan their purchase and avoid missing out on valuable tax savings.
What Is the First‑Time Home Buyer GST Rebate?
The First‑Time Home Buyer GST Rebate is a federal program that gives eligible first‑time buyers a refund of the 5% GST paid on a qualifying newly built home.
For homes up to 1,000,000 dollars: you can get back the full 5% GST, up to a maximum rebate of 50,000 dollars.
For homes between 1,000,000 and 1,500,000 dollars: the rebate is gradually reduced (pro‑rated) and drops to zero at 1,500,000 dollars.
For homes 1,500,000 dollars or more: no first‑time buyer GST rebate is available.
Example:
If you buy a 900,000‑dollar new home, 5% GST is 45,000 dollars. If you qualify, you can receive a 45,000‑dollar rebate.
If you buy a 1,250,000‑dollar new home, you are halfway between 1,000,000 and 1,500,000, so you receive about 50% of the maximum 50,000‑dollar rebate (about 25,000 dollars).
Who Can Qualify?
To qualify as a first‑time home buyer for this GST rebate, you generally must:
Be a first-time home buyer (you and your spouse/common-law partner have not owned and lived in a home as your principal residence in the recent past, based on CRA rules).
Be at least 18 years old.
Be a Canadian citizen or permanent resident.
Purchase a newly built, substantially renovated, or owner-built home.
Use the home as your primary residence.
Sign the agreement of purchase and sale within the program’s eligible dates.
Because eligibility rules may change, buyers should always confirm requirements with the Canada Revenue Agency or a qualified tax professional.
How We Help You Claim the GST Rebate
Working with a professional accountant can help you maximize the rebate and avoid costly mistakes.
1. We Confirm Your Eligibility
Review whether you and your spouse meet the first-time buyer definition.
Confirm the property qualifies as a new primary residence.
Identify potential issues such as assignment sales or mixed-use properties.
This reduces the risk of CRA denying or reassessing your rebate.
2. We Calculate Your GST Rebate
The rebate calculation is straightforward for homes under $1,000,000 but becomes more complex for homes between $1,000,000 and $1,500,000.
We can:
Verify the GST paid on your purchase.
Calculate the exact pro-rated rebate.
Understand how different purchase prices affect your rebate.
3. Prepare and File the Rebate Application
Our team assists with the entire filing process so you don’t have to deal with complex tax forms on your own. We will:
Complete the correct federal GST rebate forms.
Ensure the forms match your Statement of Adjustments and legal documents.
Submit the claim within the CRA filing deadline.
If the CRA reviews your claim, we can also help respond to questions and provide supporting documents.
Documents You Will Need for the GST Rebate
To ensure a smooth claim, we recommend keeping the following documents organized.
Core documents (Most first‑time buyers)
Agreement of Purchase and Sale
Final Statement of Adjustments from your lawyer or notary
Proof of payments (bank drafts, wires, or receipts showing GST paid)
Government-issued identification for each purchaser
Proof the home is your primary residence (driver’s licence address, utility bill, insurance, etc.)
If You Bought From a Builder (New Condo, Townhome, or House)
Builder purchase agreement and amendments
Builder invoice showing the GST portion of the purchase price
Occupancy or possession documents
Relevant GST new housing rebate forms
If You Built or Substantially Renovated the Home
Detailed invoices for materials and contractors, showing GST.
Building permits and occupancy certificate.
The owner‑built new housing rebate forms required by CRA at the time of filing.
How to Use This Rebate in Your Home‑Buying Plan
For first-time buyers—especially in expensive housing markets—this rebate can significantly reduce the overall cost of purchasing a new home. You may use the rebate to:
Lower your effective purchase price
Offset closing costs and legal fees
Improve cash flow after closing
Speaking with us before removing purchase conditions can help ensure your purchase is structured to qualify for the maximum rebate available.
Disclaimer: This blog is for general information only and does not constitute tax or legal advice. Rules and forms can change. Always confirm current requirements with your accountant and the Canada Revenue Agency.
