First-Time Home Buyers' GST/HST Rebate in Ontario: Who Qualifies and How to Claim

The first-time home buyer GST rebate can return up to $50,000 of the federal GST on a newly built home in Canada. In Ontario, a matching provincial rebate can cover up to $80,000 of the 8% provincial part of the HST. Together, a first-time buyer of a new home priced at $1 million or less can get back up to $130,000 in HST. The CRA confirms both rebates are available and open for applications as of November 2026.

These rebates only apply to new or substantially renovated homes, and the rules on dates, price and who counts as a first-time buyer are strict. Getting the rebate right also changes how much cash you need at closing, so it is worth planning early. Our first-time buyer mortgage help covers tailored mortgage planning, an online application and support through closing, so your financing fits the real numbers on your purchase.

This guide explains who qualifies, how much you can get, how Ontario's rebates stack on top and exactly how to claim.

What Is the First-Time Home Buyer GST Rebate?

The First-Time Home Buyers' (FTHB) GST/HST rebate is a federal rebate of the GST paid on a new home. It became law when Bill C-4, the Making Life More Affordable for Canadians Act, received Royal Assent on March 12, 2026. The Canada Revenue Agency (CRA) now states that applications are open.

In Ontario, new homes carry 13% HST. That is made up of the 5% federal part and the 8% provincial part. The federal FTHB rebate covers the 5% federal part. Ontario's own first-time buyer rebate covers the 8% provincial part.

Resale homes are different. Most sales of previously occupied homes are exempt from GST/HST, so there is no HST to rebate when you buy a resale house or condo.

How Much Is the Rebate?

The federal rebate depends on the price of the home.

The CRA gives a simple example: a first-time buyer of a $1.25 million home would get a $25,000 rebate.

The formula in the phase-out range is the lesser of $50,000 and the GST paid, multiplied by ($1,500,000 minus the price) divided by $500,000.

How it works with the regular new housing rebate

Canada already had a GST/HST New Housing Rebate of 36% of the GST, up to $6,300, for homes up to $350,000, reduced to zero at $450,000. You do not choose between the two. The FTHB rebate works as a top-up: any regular rebate you get is subtracted, so the total never goes over the GST you paid.

Who Qualifies for the First Time Home Buyer GST Rebate?

The CRA says that, to be eligible, the person applying must meet all of these conditions:

• Age: at least 18 years old.
• Status: a Canadian citizen or permanent resident.
• First-time buyer test: in the year the home is transferred to you, or in the previous 4 calendar years, you have not lived, as your primary residence, in a home that you or your spouse or common-law partner owned. This applies to homes anywhere in the world.
• Use of the home: you buy it to live in as your primary place of residence.
• First occupant: you are the first person to live in the home after it is built or substantially renovated.
• Once only: you, or your spouse or partner, have not already applied for and been entitled to this rebate.

This definition is not the same as the one for the Ontario land transfer tax refund, which requires that you have never owned a home anywhere. For a general overview of who counts as a first-time buyer in Ontario, see our first-time buyer eligibility guide.

Buying with a partner or family member

Only one person can claim the rebate, and that person must be a first-time buyer. A co-owner who is not a first-time buyer, such as a parent who goes on title to help you qualify, does not stop you from claiming.

Which Homes Qualify?

The rebate covers more than condos and houses bought from a builder. Eligible homes include:

• New homes from a builder: houses, townhouses and condo units, including homes on land leased from the builder on a long-term basis or with an option to buy.
• Substantially renovated homes: generally where 90% or more of the interior living space was removed or replaced.
• Owner-built homes: homes you build yourself, or substantially renovate yourself.
• Co-op shares: shares in a new co-operative housing corporation.

The date rules

Dates matter as much as price. For a home bought from a builder:

• Agreement of purchase and sale: signed on or after March 20, 2025, and before 2031.
• Construction start: before 2031.
• Completion and ownership: the home must be substantially complete, and ownership transferred, before 2036.

For an owner-built home, construction must start on or after March 20, 2025, and before 2031.

Early 2025 coverage of the announcement used May 27, 2025 as the start date. The rules now in force use March 20, 2025, so check the date in any older article you read.

Pre-construction and assignment sales

Many Ontario first-time buyers buy pre-construction. These purchases can qualify if the dates fit. The CRA's memorandum is clear that an agreement signed before March 20, 2025 stays ineligible, even if it is assigned or amended later. If you are buying an assignment, confirm the date of the original agreement with your lawyer before you sign.

How Ontario's First-Time Buyer HST Rebate Works

Ontario matches the federal rebate on the provincial part of the HST. The Ontario first-time home buyers' rebate follows the same eligibility rules and dates as the federal rebate, and you claim both together through the CRA.

• Amount: up to $80,000, which is the full 8% provincial part on a home priced at $1 million or less.
• Price range: the rebate phases out between $1 million and $1.5 million, using the same formula as the federal rebate.
• Floor: between $1 million and $1.5 million, your total Ontario relief will not fall below what the regular Ontario new housing rebate (up to $24,000) would give you.
• Top-up: like the federal rebate, it is reduced by the regular Ontario new housing rebate, so you are not paid twice.

That is how a first-time buyer in Ontario can get up to $130,000 back: up to $50,000 federal plus up to $80,000 provincial on a home at $1 million or less.

Do First Time Home Buyers Pay HST in Ontario?

Yes, HST is charged on a new home, but a qualifying first-time buyer can get all of it back on a home up to $1 million. On a $700,000 new home, for example, the 13% HST is $91,000. A first-time buyer who meets every rule could recover the full amount through the federal and Ontario rebates.

On a resale home, there is usually no HST to pay in the first place. You still pay land transfer tax, though first-time buyers can get a refund of up to $4,000 on the Ontario tax. If you qualify under both definitions, you can claim the land transfer tax refund as well as the HST rebates. Toronto buyers pay a second municipal tax, covered in our guide to the land transfer tax in Toronto.

The temporary rebate for all Ontario buyers

Ontario also has a temporary program open to any buyer of a new home who will live in it, not only first-time buyers. For agreements signed from April 1, 2026 to March 31, 2027, the Ontario Enhanced New Housing Rebate refunds up to $80,000 of the provincial part on homes up to $1.5 million, with a smaller rebate up to $1.85 million. The Ontario New Home Affordability Payment adds up to $50,000 toward the federal part, reduced by any federal rebate you get. Ontario says these payments are expected to start in early 2027.

A first-time buyer who signs in this window can claim either Ontario rebate or both, but all rebates of the provincial part are capped at the lesser of $80,000 and the provincial HST paid. For homes between $1 million and $1.5 million, this program can give more than the first-time buyer rebate alone. Ontario's own example shows a $1.2 million home receiving $130,000 in total.

Ontario's 2026 Fall Economic Statement also says the province is proceeding with ending the regular Ontario new housing rebate (up to $24,000) for agreements signed after March 31, 2027. It says the change will not affect the temporary relief above. If you plan to sign after that date, confirm the rules with your lawyer.

How to Apply for the First Time Home Buyer GST Rebate

There are two ways to claim, and the right one depends on your agreement with the builder.

Option 1: The builder credits it at closing

If your agreement assigns the rebate to the builder, the builder pays or credits the rebate amount to you at closing. The builder then files Form GST190, plus Form RC7190-ON for the Ontario part, with the CRA, attaching your statement of adjustments and agreement of purchase and sale.

Option 2: You apply to the CRA yourself

If the builder does not credit the rebate, you apply after closing:

• Online: through your CRA My Account, using the "File a GST/HST rebate" service.
• By mail: using Form GST190.
• Ontario part: add Form RC7190-ON to claim the Ontario rebate on the provincial part.
• Owner-built homes: use Form GST191 and Form RC7191-ON.

Deadlines

You generally have 2 years from the date ownership transfers to you to apply. If you bought before the law passed on March 12, 2026 and an application was already filed, for example for the regular new housing rebate, the CRA says you can submit another application for the federal and Ontario first-time buyer rebates within that 2-year window.

How the Rebate Affects Your Mortgage and Closing Costs

The rebate is a tax refund, not a loan, but the way you claim it changes your cash needs.

If the builder credits the rebate, it lowers the amount you pay at closing. If you apply yourself, the money arrives later, so you must fund the full HST-inclusive amount on closing day. Read your agreement to see whether the price includes HST and whether the rebate is assigned to the builder.

This matters for your down payment, mortgage amount and closing budget. As a licensed Ontario mortgage brokerage (Brokerage Licence #12566), LendingHub can help you map out these numbers before you sign with a builder.

The rebate also works alongside other first-time buyer tools. You can use savings from a First Home Savings Account, explained in our guide on how the FHSA works, and the RRSP Home Buyers' Plan for the down payment. For more options, see our roundup of other first-time buyer programs.

Common Mistakes That Can Cost You the Rebate

• Wrong agreement date: signing before March 20, 2025, rules the home out, even if you assign or amend the deal later.
• Not the first occupant: if someone lived in the unit before you, it does not qualify.
• Renting the unit out: the home must be your primary place of residence.
• Missing the deadline: apply within 2 years of the ownership transfer.
• Forgetting the Ontario form: without RC7190-ON, you may miss the provincial part.

Frequently Asked Questions

Can I get the first-time home buyer GST rebate on a resale home?

No. Most resale homes are exempt from GST/HST, so there is nothing to rebate. The rebate is for new or substantially renovated homes.

Does the rebate cover the full 13% HST in Ontario?

The federal rebate covers the 5% federal part. Ontario's first-time buyer rebate covers the 8% provincial part. Together they can cover the full 13% on a home up to $1 million.

What if I owned a home years ago?

You may still qualify. The test looks at whether you lived in a home you or your spouse or partner owned in the year of transfer or the previous 4 calendar years.

My spouse owns a condo we live in. Can I claim?

Usually not. If you lived in a home owned by your spouse or common-law partner during that period, you do not meet the first-time buyer test.

Plan Your New Home Purchase With the Rebate in Mind

The first-time home buyer GST rebate and Ontario's matching rebate can save you tens of thousands of dollars on a new home, but only if the dates, price and paperwork line up. Check your agreement date, confirm you meet the first-time buyer test and decide early whether the builder will credit the rebate. If you want help planning your mortgage around these numbers, talk to the LendingHub team.

This article is general information based on CRA, Government of Canada and Ontario sources as of November 2026. It is not tax, legal or financial advice. Please speak with a licensed professional, such as a lawyer, accountant or mortgage agent, about your situation.