Canada’s 2025 First-Time Home Buyer GST/HST Rebate reduces or eliminates the federal portion of GST or HST on newly built homes. Eligible first-time buyers can receive up to $50,000 in savings on homes priced up to $1.5 million, helping lower upfront purchase costs when buying or building a primary residence.
Is CRA Paying This Rebate Right Now?
No. As of late 2025 / early 2026, the Canada Revenue Agency (CRA) is not yet paying the First-Time Home Buyer GST/HST rebate.
This rebate is based on proposed federal legislation that has not yet received Royal Assent, which means: – Applications are not open – CRA forms are not active – Payments cannot be issued yet
Why the Rebate Is Not Active Yet
The rebate is included in Bill C-4, which: – Has passed the House of Commons – Still requires Senate approval and Royal Assent
Until Royal Assent occurs, CRA cannot legally process or pay the rebate.
Who Is Considered a First-Time Home Buyer?
You are generally considered a first-time home buyer if: – You are 18 years or older (19 in New Brunswick) – You are a Canadian citizen or permanent resident – You did not live in a home you or your spouse/common-law partner owned in the current year or the previous four years – You have never claimed this specific GST/HST rebate before
What Types of Homes Qualify?
This rebate applies only to new housing, including: – New homes purchased from a builder – Owner-built homes – Substantially renovated homes – Certain housing co-operative purchases
Resale homes do NOT qualify.
How Much Is the Rebate?
The rebate applies to the federal GST portion only:
- Homes up to $1,000,000
→ 100% of the federal GST, up to $50,000 - Homes between $1,000,000 and $1,500,000
→ Rebate is phased out proportionally - Homes over $1,500,000
→ No rebate
Important Timing Rules
To qualify under the proposed rules: – Purchase agreement must be signed on or after May 27, 2025 – Agreement must be signed before 2031 – Construction must begin before 2031 – Home must be substantially completed before 2036
How Will Buyers Receive the Rebate?
Once the law is in force: – Buyers will typically pay full GST/HST at closing – The rebate will be claimed directly from CRA after possession – Builders cannot credit this rebate at closing until CRA authorizes it
Key Takeaways
✔ The rebate has been announced
✔ It may be claimed retroactively once active
❌ CRA is not paying it yet
❌ Applications are not open
❌ It should not be counted as cash at closing today
Always plan conservatively and verify eligibility before relying on the rebate. Consult your lawyer and CRA for more information.
**This document is for educational purposes only and does not replace legal, Real Estate