First-time Home Buyers' GST/HST Rebate
GST/HST memorandum 19-3-10
October 2026
This publication explains the first-time home buyers' GST/HST rebate that is available for a portion of the GST or the federal part of the HST on new housing purchased or built by a first-time home buyer.
For homes located in Ontario, the Ontario Enhanced New Housing Rebate may be available, refer to GST/HST Notice 346, Ontario Enhanced New Housing Rebate.
Table of Contents
- Overview
- Meaning of significant terms
- Background
- Eligible properties
- First-time home buyer
- Residential complex purchased from a builder
- Purchase of building only on leased land
- Purchase of a share of capital stock of a cooperative housing corporation
- Owner-built residential complex
- Restriction on rebate
- How to apply
- Appendix A
Overview
1. The first-time home buyers' (FTHB) GST/HST rebate, together with the GST/HST new housing rebate, where that rebate is applicable, provides a rebate of 100% of the GST or the federal part of the HST paid on new homes valued up to $1 million. The FTHB GST/HST rebate is reduced for new homes valued between $1 million and $1.5 million. No FTHB GST/HST rebate is available for new homes valued at or above $1.5 million.
2. For eligible properties situated in Ontario, the Ontario FTHB rebate, together with the Ontario new housing rebate where that rebate is applicable, provides a rebate of 100% of the provincial part of the HST paid on new homes valued up to $1 million. The Ontario FTHB rebate is reduced for new homes valued between $1 million and $1.5 million, and is not available for new homes valued at $1.5 million or more.
3. New housing that does not qualify for the FTHB GST/HST rebate may qualify for the GST/HST new housing rebate where the conditions outlined in Guide RC4028, GST/HST New Housing Rebate, are met.
Meaning of significant terms
4. Agreement of sale is defined in subsection 263.4(1) and, for the purposes of section 263.4, means an agreement that is entered into by a builder of the residential complex under which the residential complex or a building or part of a building in which a residential unit forming part of the residential complex is located is supplied by way of sale.
5. In the case of a cooperative housing corporation (co-op), the agreement of sale means an agreement that is entered into by a co-op that owns the residential complex, and under which a share of the capital stock of the co-op is supplied by way of sale, which entitles the individual to possession of a residential unit located in the residential complex.
6. Primary place of residence of an individual generally means the residence that the individual lives in on a permanent basis. An individual may have more than one residence, but is considered to have only one primary place of residence. For more information, refer to GST/HST Policy Statement P-228, Primary Place of Residence.
7. Residential complex is defined in subsection 123(1) and includes a building or part of a building in which one or more residential units are located, along with areas that are reasonably necessary for the use and enjoyment of the building as a place of residence for individuals. These include:
- part of any common areas and other appurtenances to the building
- the land on which the building is situated
- the part of the land subjacent and immediately contiguous to the building
8. A residential complex generally does not include a building or that part of a building that is a hotel, a motel, an inn, a boarding house, lodging house, or similar premises.
9. Residential unit is defined in subsection 123(1) and means any of the following:
- a detached house, semi-detached house, rowhouse unit, condominium unit, mobile home, floating home, or apartment
- a suite or room in a hotel, a motel, an inn, a boarding house, or a lodging house, or in a residence for students, seniors, individuals with a disability, or other individuals
- any other similar premises
- the part of such housing listed above that:
- is occupied by an individual as a place of residence or lodging
- is supplied by way of lease, licence, or similar arrangement as a place of residence or lodging for individuals
- is vacant, but was last occupied or supplied as a place of residence or lodging for individuals
- has never been used or occupied for any purpose, but is intended to be used as a place of residence or lodging for individuals
10. Residential condominium unit is defined in subsection 123(1) and means "a residential complex that is, or is intended to be, a bounded space in a building designated or described as a separate unit on a registered condominium or strata lot plan or description, or a similar plan or description registered under the laws of a province, and includes any interest in land pertaining to ownership of the unit".
11. Single unit residential complex is defined in subsection 123(1) and means "a residential complex that does not contain more than one residential unit, but does not include a residential condominium unit".
12. For the purposes of the FTHB GST/HST rebate, a single unit residential complex generally includes a multiple unit residential complex containing only two residential units (for example, a duplex).
13. A single unit residential complex generally includes other structures near or adjacent to the unit, such as a detached garage or shed. It also includes the land subjacent and immediately contiguous to the unit that can reasonably be regarded as contributing to the use and enjoyment of the unit as a place of residence.
14. Substantial renovation of a residential complex is defined in subsection 123(1) and generally means the renovation of the whole or that part of a building that forms a part of a residential complex to such an extent that at least 90% of the building or part, other than the foundation, external walls, interior supporting walls, floors, roof, and staircases that existed immediately before the renovation, has been removed or replaced if, after completion of the renovation, the building or part of the building is, or forms part of, a residential complex.
Background
15. An individual who purchases new or substantially renovated residential housing from a builder is generally liable for the GST/HST calculated on the purchase price of the property. Similarly, an individual that constructs or substantially renovates residential housing for use as their primary place of residence is liable for the GST/HST paid for the purchase of land, building materials, construction costs, and other improvements.
16. The individual may be entitled to claim a GST/HST new housing rebate for some of the GST or the federal part of the HST that is paid or payable on the purchase or construction of the housing. An individual who is a first-time home buyer may also be entitled to claim an FTHB GST/HST rebate, where all conditions for that rebate are met.
GST/HST new housing rebate
17. Generally, an individual may be entitled to claim a GST/HST new housing rebate to recover some of the GST or the federal part of the HST paid for a new or substantially renovated residential complex that is a single unit residential complex or residential condominium unit and that is for use as the individual's or their relation's primary place of residence, where all of the other conditions are met.
18. The GST/HST new housing rebate is generally 36% of the GST or the federal part of the HST paid or payable by an individual on the purchase or construction of the residential complex, subject to a maximum amount of $6,300. The GST/HST new housing rebate is gradually reduced for residential complexes valued between $350,000 and $450,000. No rebate is available for the GST or the federal part of the HST if the residential complex is valued at $450,000 or more.
First-time home buyers' GST/HST rebate
19. An individual who is an eligible first-time home buyer (as defined in paragraph 26 of this memorandum) may be entitled to claim an FTHB GST/HST rebate to recover some of the GST or the federal part of the HST paid for a new or substantially renovated residential complex that is a single unit residential complex or residential condominium unit and that is for use as the individual's primary place of residence, where the individual is the first individual to occupy the complex or unit as a place of residence.
20. The FTHB GST/HST rebate is generally 100% of the GST or the federal part of the HST paid or payable by an individual on the purchase or construction of the residential complex, subject to a maximum amount of $50,000. The FTHB GST/HST rebate is gradually reduced for residential complexes valued between $1 million and $1.5 million. No rebate is available for the GST or federal part of the HST if the residential complex is valued at $1.5 million or more.
21. For residential complexes valued at $450,000 or less, where the individual is entitled to claim a GST/HST new housing rebate, the individual may also be entitled to claim an FTHB GST/HST rebate, providing a combined rebate of 100% of the GST or the federal part of the HST paid.
22. The FTHB GST/HST rebate is only available where the agreement of purchase and sale for the residential complex is entered into with the builder on or after March 20, 2025, and before 2031. In the case of an owner-built home, the FTHB GST/HST rebate is only available where the construction or substantial renovation of the residential complex began on or after March 20, 2025, and before 2031.
Eligible properties
23. The FTHB GST/HST rebate may be available to individuals who:
- buy a new or substantially renovated residential complex from a builder for use as their primary place of residence
- buy a share of the capital stock of a co-op for the purpose of inhabiting a new or substantially renovated residential unit in a residential complex as their primary place of residence
- build or substantially renovate their own residential complex, or hire another person to build or substantially renovate a residential complex for them, for use as their primary place of residence
24. A single unit residential complex includes a multiple unit residential complex that does not contain more than two residential units. Note that if 50% or more of a newly constructed or substantially renovated owner‑built duplex is rented to an unrelated person, the owner may be subject to the GST/HST on the fair market value of the complex under the self-supply rules in section 191.
25. A single unit residential complex includes a residential complex that is a bed and breakfast establishment that contains one or more residential units that are for supply as rooms in a hotel, motel, inn, boarding house, lodging house, or similar premises if the residential complex is owned by an individual and is for use primarily (more than 50%) as the primary place of residence of the owner.
First-time home buyer
26. First-time home buyer is defined in subsection 123(1) and generally means an individual who, at a particular time, meets all of the following conditions:
- is 18 years of age or older
- is a Canadian citizen or permanent resident of Canada within the meaning of subsection 2(1) of the Immigration and Refugee Protection Act
- has not occupied a residential unit as their primary place of residence, situated in or outside of Canada, that the individual owned or jointly owned in the calendar year that includes the particular time or in the four preceding calendar years
- if the individual has a spouse or common-law partner at the particular time, has not occupied a residential unit as their primary place of residence, situated in or outside of Canada, that the individual’s spouse or common-law partner owned or jointly owned in the calendar year that includes the particular time or in the four preceding calendar years
Particular time
27. To be eligible for the FTHB GST/HST rebate, an individual must be a first-time home buyer at a particular time, which will vary depending on the type of housing, as follows:
| Type of housing | Particular time |
|---|---|
| Residential complex purchased from a builder | When ownership is transferred to the individual |
| Building only sold by a builder on leased land | When possession is transferred to the individual |
| Owner-built home | Earlier of two dates:
|
| Share of a cooperative housing corporation | When ownership of the share of the co-op is transferred to the individual |
Example 1 – Individual previously owned a home
An individual entered into an agreement of purchase and sale with a builder on June 1, 2025, for the purchase of a newly constructed townhouse for use as the individual's primary place of residence. Ownership of the townhouse transferred to the individual on October 15, 2025. The individual previously lived in a home that they owned, which the individual sold in September 2020. The individual then lived in a rental apartment until moving into the new townhouse.
The individual is considered to be a first-time home buyer. The particular time is October 15, 2025, which is the date when ownership of the townhouse was transferred to the individual. Although the individual previously lived in a home that they owned until 2020, the individual did not live in a home that they or their common-law partner owned in the 2025 calendar year or the four preceding calendar years, that is 2024, 2023, 2022, or 2021.
Multiple buyers
28. Subsection 262(3) provides that an FTHB GST/HST rebate may be available if two or more individuals purchase a residential complex or a share of the capital stock of a co-op, or if two or more individuals construct or substantially renovate or engage another person to construct or substantially renovate, a residential complex, where the residential complex is for use as the primary place of residence of any of the individuals or the share of capital stock in a co-op is acquired for the purpose of inhabiting a residential unit in the co-op as the primary place of residence of any of the individuals, as the case may be.
29. Where two or more individuals purchase, construct, or substantially renovate a residential complex, or engage another person to do so, or purchase a share of the capital stock of a co-op, only one of the individuals may apply for the FTHB GST/HST rebate. The individual who applies for the FTHB GST/HST rebate must be a first-time home buyer.
Example 2 – Multiple buyers are first-time home buyers
Two individuals who are spouses purchased a newly constructed residential condominium unit from a builder. Both individuals meet the conditions to be a first-time home buyer, and they meet the conditions for the FTHB GST/HST rebate.
As both individuals are first-time home buyers, either individual can apply for the FTHB GST/HST rebate. However, only one of the individuals can apply for the FTHB GST/HST rebate under subsection 262(3), therefore they have to choose which individual applies.
Example 3 – Multiple buyers where only one is a first-time home buyer
An individual entered into an agreement of purchase and sale with a builder for a newly constructed house. For financing purposes, the individual's parents are listed as co-purchasers and they are included on title to the property. The individual is a first-time home buyer, however, the parents own their own home and are not first-time home buyers. All other conditions for the FTHB GST/HST rebate are met.
The individual is entitled to claim the FTHB GST/HST rebate as only one of the buyers must be a first-time home buyer that meets all the other conditions for the FTHB GST/HST rebate. Only the individual, not the parents, can apply for the FTHB GST/HST rebate.
Residential complex purchased from a builder
30. The FTHB GST/HST rebate under subsection 254(2.1) applies to the purchase of a single unit residential complex or residential condominium unit from a builder.
31. To be eligible for the FTHB GST/HST rebate, the individual must be entitled to claim a GST/HST new housing rebate under subsection 254(2), or would be entitled to claim the rebate if the references to consideration paid were read as $1,500,000 instead of $450,000. For information on eligibility for the GST/HST new housing rebate under subsection 254(2), refer to GST/HST Memorandum 19-3-1, Rebate for Builder-Built Unit (Land Purchased).
32. The individual must be acquiring the residential complex for use as their primary place of residence and be the first occupant after construction or substantial renovation of the complex is substantially completed.
33. All of the following additional criteria must also be met:
- The agreement of purchase and sale must be signed after March 19, 2025, and before 2031
- Construction or substantial renovation of the residential complex must begin before 2031 and be substantially completed before 2036
- Ownership of the residential complex must be transferred to the individual before 2036
- The individual is a first-time home buyer as defined in subsection 123(1) at the time when ownership of the residential complex is transferred to the individual
Example 4 – Date of agreement of purchase and sale
An individual who is a first-time home buyer entered into an agreement of purchase and sale with a builder for a new residential condominium unit in 2023. Ownership of the condominium unit was transferred to the individual in November 2025.
The individual is not eligible for the FTHB GST/HST rebate since the agreement of purchase and sale was not entered into after March 19, 2025.
Example 5 – Conditional sales agreement
On March 18, 2025, an individual signed an agreement of purchase and sale with a builder for the purchase of a new house with an occupancy date in September 2025. The sale is conditional on the individual obtaining financing and a home inspection before occupancy. The final conditions were waived on June 1, 2025.
An agreement of purchase and sale refers to an agreement between the builder and the purchaser. This agreement may be a preliminary contract, an offer to purchase that has been accepted by the builder, or a pre-sale contract, and may contain conditions that the parties may later waive. It is the date that both parties agree to the purchase and sale, and not a later date when conditions may be waived that is relevant in determining whether the agreement was entered into after March 19, 2025, and before 2031. Therefore, as the individual entered into the agreement of purchase and sale on March 18, 2025, they are not eligible for the FTHB GST/HST rebate in relation to the purchase of this house.
Rebate calculation for residential complex purchased from a builder
34. Subsection 254(2.1) provides the following formula to calculate the FTHB GST/HST rebate for a residential complex purchased from a builder with total consideration payable of $1,000,000 or less:
A − B
where:
35. Subsection 254(2.1) provides the following formula to calculate the FTHB GST/HST rebate for a residential complex purchased from a builder with total consideration payable between $1,000,000 and $1,500,000:
C × [($1,500,000 − D) ÷ $500,000]
where:
36. No FTHB GST/HST rebate is available where the total consideration payable for the purchase of the residential complex is $1,500,000 or more.
Purchase of building only on leased land
37. The FTHB GST/HST rebate under subsection 254.1(2.1) applies to the purchase of a building or part thereof that forms part of a newly constructed residential complex that is a single unit residential complex or residential condominium unit, where the land is leased from the builder on a long-term basis or with an option to purchase. Subsection 254.1(2.1) also applies to the purchase of a building where the builder assigns the leasehold interest in the underlying land on which the building is situated.
38. To be eligible for the FTHB GST/HST rebate, the individual must be entitled to claim a GST/HST new housing rebate under subsection 254.1(2), or would be entitled to claim the rebate if the references to the fair market value of the residential complex were read as $1,575,000 instead of $472,500. For information on eligibility for the GST/HST new housing rebate under subsection 254.1(2), refer to GST/HST Memorandum 19-3-2, Rebate for Builder-Built Unit (Land Leased).
39. The individual must be acquiring the residential complex for use as their primary place of residence and be the first occupant after construction or substantial renovation of the complex is substantially completed.
40. The following additional criteria must also be met:
- The agreement for the purchase of the building or part thereof and the lease of the land must be signed on or after March 20, 2025, and before 2031
- Construction or substantial renovation of the residential complex must begin before 2031 and be substantially completed before 2036
- Possession of the residential complex must be transferred to the individual before 2036
- The individual is a first-time home buyer as defined in subsection 123(1) at the time when possession of the residential complex is transferred to the individual
Rebate calculation for purchase of building only on leased land
41. In a non-participating province, subsection 254.1(2.1) provides the following formula to calculate the FTHB GST/HST rebate in respect of the purchase of a building only and the lease of land from a builder, where the fair market value of the residential complex is $1,050,000 or less:
A – B
where:
42. Subsection 254.1(2.1) provides the following formula to calculate the FTHB GST/HST rebate in respect of the purchase of a building only and the lease of land from a builder, where the fair market value of the residential complex is between $1,050,000 and $1,575,000:
C × [($1,575,000 − D) ÷ $525,000]
where:
43. No FTHB GST/HST rebate is available where the fair market value of the residential complex is $1,575,000 or more.
44. Appendix A provides the rebate calculation under subsection 254.1(2.1) for the purchase of a building only and lease of land in a participating province.
Purchase of a share of capital stock of a cooperative housing corporation
45. The FTHB GST/HST rebate under subsection 255(2.1) applies to purchases of shares of the capital stock of a co-op that entitles an individual to possession of a residential unit in a residential complex.
46. To be eligible for the FTHB GST/HST rebate, the individual must be entitled to claim a GST/HST new housing rebate under subsection 255(2), or would be entitled to claim the rebate if the references to consideration paid were read as $1,575,000 instead of $472,500. For information on eligibility for the GST/HST new housing rebate under subsection 255(2), refer to GST/HST Memorandum 19-3-3, Rebate for Cooperative Housing.
47. The individual must be acquiring the share of the co-op for the purpose of using the residential unit as their primary place of residence and be the first occupant after possession of the residential unit is transferred to the individual.
48. The following additional criteria must also be met:
- The agreement of purchase and sale must be signed on or after March 20, 2025, and before 2031
- Construction or substantial renovation of the residential complex must begin before 2031 and be substantially completed before 2036
- Ownership of the share must be transferred to the individual before 2036
- The individual is a first-time home buyer as defined in subsection 123(1) at the time when ownership of the share is transferred to the individual
49. The purchaser of a share of the capital stock of a co-op is not eligible for an FTHB GST/HST rebate if the co-op is eligible for the GST/HST purpose-built rental housing (PBRH) rebate. For information on the PBRH rebate, refer to GST/HST Memorandum 19-3-9, Purpose-built Rental Housing Rebate.
Rebate calculation for the purchase of a share of capital stock in a cooperative housing corporation
50. In a non-participating province, subsection 255(2.1) provides the following formula to calculate the FTHB GST/HST rebate in respect of consideration payable on the purchase of a share or an interest in a co-op that is $1,050,000 or less:
A − B
where:
51. Subsection 255(2.1) provides the following formula to calculate the FTHB GST/HST rebate in respect of consideration payable on the purchase of a share or an interest in a co-op that is between $1,050,000 and $1,575,000:
C × [($1,575,000 − D) ÷ $525,000]
where:
52. No FTHB GST/HST rebate is available if the consideration payable on the purchase of a share or an interest in a co-op is $1,575,000 or more.
53. Appendix A provides the rebate calculation under subsection 255(2.1) for the purchase of a share of capital stock in a co-op in a participating province.
Owner-built residential complex
54. The FTHB GST/HST rebate under subsection 256(2.1) applies where an individual constructs or substantially renovates, or engages another person to construct or substantially renovate, a single unit residential complex or residential condominium unit.
55. To be eligible for the FTHB GST/HST rebate, the individual must be entitled to claim a GST/HST new housing rebate under subsection 256(2), or would be entitled to claim the rebate if references to the fair market value of the residential complex were read as $1,500,000 instead of $450,000. For information on eligibility for the GST/HST new housing rebate under subsection 256(2), refer to GST/HST Memorandum 19-3-4, Rebate for Owner-Built Homes.
56. The individual must be constructing or substantially renovating the residential complex for the purpose of using it as their primary place of residence, and be the first occupant, before 2036, and after construction or substantial renovation of the complex is begun.
57. All of the following additional criteria must also be met:
- Construction or substantial renovation of the residential complex must begin on or after March 20, 2025 and before 2031 and be substantially completed before 2036
- The individual first occupies the residential complex as a place of residence before 2036
- The individual is a first-time home buyer as defined in subsection 123(1) at the earlier of:
- when the residential complex is first occupied by the particular individual as a place of residence
- when the construction or substantial renovation of the residential complex is substantially completed
Example 6 – Substantial renovation of owner's home
An individual owns a house where they have lived for the past 15 years. The individual moves out of the house in order to substantially renovate the house for use as their primary place of residence. The substantial renovation began on July 15, 2025, and was substantially completed on December 15, 2025. The individual occupied the house on January 2, 2026.
The individual is not eligible for the FTHB GST/HST rebate since the individual is not a first-time home buyer on December 15, 2025, when the substantial renovation was substantially completed. The individual lived in a house that they owned in the 2025 calendar year or in the four preceding calendar years.
Example 7 – Substantial renovation of owner's home
An individual purchased a house that was built 30 years ago and substantially renovated the house for use as their primary place of residence. The substantial renovation began on July 15, 2025, and was substantially completed on December 15, 2025. The individual first occupied the house on January 2, 2026. The individual had not previously owned a home and lived with their parents until they occupied the substantially renovated house.
The individual is a first-time home buyer on December 15, 2025, when the substantial renovation was substantially completed and is eligible for the FTHB GST/HST rebate where all other conditions for the rebate are met.
Rebate calculation for owner-built homes
58. Subsection 256(2.1) provides the following formula to calculate the FTHB GST/HST rebate for owner-built homes with a fair market value under $1.5 million:
A × [($1,500,000 − B) ÷ $500,000] − C
where:
59. No FTHB GST/HST rebate is available for owner-built homes with a fair market value of $1.5 million or more.
When construction begins
60. Construction is generally considered to begin at the time when the excavation work relating to the residential complex begins.
61. Construction is not considered to begin at any of the following times:
- signing a purchase and sale agreement
- demolition
- site and environmental testing
- plan development and finalization
- clearing, remediation, and reclamation activities
- issuance of permits
- contracting for the excavation
- road construction
62. Where a builder begins and then ceases the construction of a residential complex and the builder, or a subsequent builder, resumes construction of the same residential complex or a different residential complex that incorporates the previous construction work, construction of the complex is generally considered to have begun when the initial excavation began.
Example 8 – Construction begins at the time of excavation
An individual purchased vacant land on October 15, 2024, for the purpose of building a house for use as their primary place of residence. The individual hired professionals to conduct site and environmental testing and to develop the building plans. The building permit was issued on February 15, 2025, and the individual hired a general contractor to oversee the construction. Excavation began on June 1, 2025.
The construction of the complex began on June 1, 2025, when the excavation began. The determination of when construction begins is not based on site and environmental testing, developing and finalizing plans for construction, obtaining permits, or contracting for excavation.
Example 9 – Construction plans changed
An individual hired a contractor to build a new single, detached house on vacant land that they owned. On February 1, 2025, the contractor started the excavation of the site for the house. Due to issues with the building permits, construction was ceased after completing the foundation. The individual had the plans redrawn and applied for a building permit for the construction of a duplex.
Construction on the site resumed in July 2025, and was substantially completed in November 2025. The existing foundation was reinforced, expanded, and used in the construction of the duplex.
The construction of the duplex began on February 1, 2025, when the site was first excavated for the single detached house.
When substantial renovation begins
63. The time when substantial renovation begins is generally considered to be the time when alterations to the building have begun. This would include any works to demolish, replace, or remove any existing parts of the building.
64. The time when substantial renovation begins is not considered to be the time of:
- signing a home renovation agreement
- plan development and finalization
- issuance of permits
- contracting for any specific works
Example 10 – Substantial renovation of existing house
An individual purchased a house on March 1, 2025, with the intention of substantially renovating the house so that it could be used as their primary place of residence. The individual began taking down drywall and removing cabinetry as soon as they took possession of the house on March 1, 2025. The individual obtained the building permit on April 1, 2025. No excavation was required for the substantial renovation.
The substantial renovation is considered to have begun on March 1, 2025, when demolition work began.
Restriction on rebate
65. Subsection 263.3(2) provides that an FTHB GST/HST rebate will not be paid if the individual or the individual's spouse or common-law partner previously applied for another FTHB GST/HST rebate and they were entitled to that rebate.
66. Subsection 263.3(3) provides that where an individual makes an application for, and is entitled to, an FTHB GST/HST rebate, and the rebate is payable to a group of individuals, if a member of the group is a spouse or common-law partner of the individual, that spouse or common-law partner is deemed to have also made an application for, and be entitled to, the rebate at that same time.
67. An individual is considered to have made an application for a rebate if they file an application with the Minister or submit it to a builder.
Variation, alteration, or assignment of an agreement
68. Subsection 263.4(3) provides that where an agreement of sale in respect of a residential complex is entered into before March 20, 2025, and the agreement of sale is later varied, altered, or assigned such that it is considered to be entered into after March 19, 2025, the agreement of sale is deemed to have been entered into before March 20, 2025.
69. If the agreement of sale, in respect of a residential complex, is deemed to have been entered into before March 20, 2025, no FTHB GST/HST rebate is available in respect of the residential complex.
Example 11 – Assignment of agreement
On January 15, 2025, Individual A entered into an agreement of sale with a builder for a new residential condominium unit. Individual A decided that they no longer wanted to purchase the unit and entered into an assignment agreement on September 1, 2025, with Individual B, who is an arm's length party. Individual B plans to occupy the unit as their primary place of residence. Possession and ownership of the unit are transferred to Individual B on February 25, 2026.
The initial agreement of sale was entered into on January 15, 2025. Even if the assignment purports to change the date the agreement of sale was entered into, the agreement is deemed to have been entered into before March 20, 2025. Therefore, Individual B is not eligible for an FTHB GST/HST rebate in relation to the purchase of the unit.
Example 12 – Variation of an agreement to add additional purchaser
An individual entered into an agreement of purchase and sale in January 2025. The agreement was amended in June 2025, to add the individual's child, who is a first-time home buyer.
Where an agreement that is varied, altered, or assigned was initially entered into before March 20, 2025, even if the variation purports to change the date the agreement of sale was entered into, the varied agreement is deemed to have been entered into before March 20, 2025. Therefore, the child is not entitled to an FTHB GST/HST rebate.
New agreement with respect of a particular residential complex
70. Where a particular individual, or group of individuals, have entered into an agreement of sale with a person that is a builder or co-op in respect of a particular residential complex before March 20, 2025, and terminate that agreement, subsections 263.4(4) and (5) limit the circumstances where an individual or group of individuals may be eligible to apply for the FTHB GST/HST rebate when they enter into a new agreement for that particular residential complex or another one, after March 19, 2025.
71. Specifically, if the particular individual or group of individuals, or another individual or group of individuals not dealing at arm's length with the particular individual or group of individuals, enter into a new agreement of sale in respect of the particular residential complex or another one, with the person, another builder, or another person that is a builder or a co-op and that is not dealing at arm's length with the person, and the agreement may not reasonably be considered to have been entered into primarily for bona fide purposes other than obtaining the FTHB GST/HST rebate, then the new agreement of sale is deemed to have been entered into before March 20, 2025.
72. For the purpose of section 263.4, a group of individuals and a particular individual are not dealing with each other at arm's length if the particular individual is a member of the group, or the particular individual is not dealing at arm's length with one or more members of the group. Additionally, a particular group of individuals and another group of individuals are not dealing with each other at arm's length if one or more individuals are members of both groups, or one or more members of the particular group are not dealing at arm's length with one or more members of the other group.
Example 13 – Termination of an agreement followed by entering into a new agreement by the spouse
On March 1, 2025, Individual C entered into an agreement of sale with a builder for a townhouse in a row of five townhouses. Individual C wanted to take advantage of the tax savings from the FTHB GST/HST rebate, therefore, on April 15, 2025, Individual C and the builder terminate the agreement of sale such that the parties no longer have any obligations to each other.
On April 16, 2025, Individual D, who is the spouse of Individual C, enters into an agreement of sale with the same builder for another townhouse that the builder is constructing on the same road.
Since Individuals C and D are not dealing at arm's length with each other and did not terminate the original agreement and enter into the new agreement for a bona fide purpose other than obtaining an FTHB GST/HST rebate, the agreement entered into by Individual D is deemed to have been entered into before March 20, 2025.
Example 14 – Termination of an agreement followed by entering into a new agreement with a related party
On February 25, 2025, an individual enters into an agreement of sale with Builder A for a particular residential complex. After the FTHB GST/HST rebate was announced, the individual and Builder A terminated the agreement of sale, and Builder B, who is related to Builder A, entered into a new agreement of sale with the individual for the particular residential complex on March 28, 2025.
Since the individual did not terminate the original agreement and enter into the new agreement for a bona fide purpose other than obtaining an FTHB GST/HST rebate, the agreement entered into by the individual with Builder B is deemed to have been entered into before March 20, 2025.
Example 15 – Termination of an agreement due to insolvency of builder
An individual who is a first-time home buyer entered into an agreement of sale on June 20, 2024, with Builder C for a condominium unit, with an expected final closing date of January 31, 2026. The agreement was cancelled on February 15, 2025, by Builder C due to financial reasons. Builder D, who is dealing at arm’s length with Builder C, took over the development and a new agreement was entered into with the individual on June 1, 2025, for the same unit, with the same closing date.
In this case, it appears that the agreement with Builder D was undertaken for bona fide purposes other than to obtain an FTHB GST/HST rebate. Therefore, the date of the agreement of sale with Builder D is relevant for determining whether the individual is entitled to the FTHB GST/HST rebate.
How to apply
73. To apply for the FTHB GST/HST rebate, complete Form GST190, GST/HST New Housing Rebate Application for Houses Purchased from a Builder or Form GST191 GST/HST New Housing Rebate Application for Owner-Built Houses, as applicable.
74. An application for an FTHB GST/HST rebate must be filed within two years after a specific date which will vary depending on the type of property acquired. For purchases of a residential complex from a builder, the application must be submitted no later than two years from the date ownership is transferred to the individual. For buildings purchased on leased land, the two-year period begins on the date possession is taken. For purchases of shares from a co-op, the deadline is two years from the date the share ownership is transferred. For owner-built residential complexes, the application must be filed within two years after the earliest of the following:
- the date the home is first occupied after construction began
- the date ownership is transferred to another person before being occupied
- the date construction or renovation is substantially completed.
75. For more information, go to First-time home buyers' (FTHB) GST/HST rebate.
Rebates paid or credited by the builder
76. For homes purchased from a builder, the builder may, with the agreement of the purchaser, choose to pay or credit the amount of the FTHB GST/HST rebate to an individual purchaser who is entitled to the rebate.
77. The builder and the purchaser must complete all applicable parts of Form GST190. The builder will include the amount of the FTHB GST/HST rebate they paid or credited to the purchaser on line 135 and in their line 108 calculation of their GST/HST return for the reporting period in which it paid or credited the amount of the rebate. The builder must send the completed Form GST190 with that GST/HST return by the due date of the return.
78. The builder and purchaser are jointly and severally liable to repay the FTHB GST/HST rebate to the Canada Revenue Agency if the builder pays or credits the rebate to a purchaser, and the builder knew or ought to have known that the purchaser was not entitled to the rebate amount. The joint and several liability applies whether the builder paid or credited a rebate that the purchaser was not entitled to, or the amount exceeds the rebate amount to which the individual is entitled.
Appendix A
The following calculations are used to determine the amount of the FTHB GST/HST rebate for the purchase of a building only on leased land under subsection 254.1(2.1) or the purchase of a share of capital stock in a co-op under subsection 255(2.1).
Non-participating province
Where the fair market value is $1,050,000 or less:
A − B
where:
Where the fair market value is between $1,050,000 and $1,575,000:
C × [($1,575,000 − D) ÷ $525,000]
where:
Ontario
Where the fair market value is $1,130,000 or less:
A − B
where:
Where the fair market value is between $1,130,000 and $1,695,000:
C × [($1,695,000 − D) ÷ $565,000]
where:
Nova Scotia
Where the fair market value is $1,140,000 or less:
A − B
where:
Where the fair market value is between $1,140,000 and $1,710,000:
C × [($1,710,000 − D) ÷ $570,000]
where:
New Brunswick, Prince Edward Island, Newfoundland and Labrador
Where the fair market value is $1,150,000 or less:
A − B
where:
Where the fair market value is between $1,150,000 and $1,725,000:
C × [($1,725,000 − D) ÷ $575,000]
where: