Skip to main content

Wilson Rasmussen LLP

Whether you need help with contracts, buying property, or planning your estate, we’re here to support you.

New GST Rebate for First-Time Home Buyers – Bill C-4

Two-story suburban family home with brick and siding exterior, black shutters, and green landscaping.

On March 12, 2026, the federal government introduced significant changes to the GST rebate treatment of new residential housing through Bill C-4, which amends the Excise Tax Act expanding the GST rebate available to first-time home buyers.

These changes are intended to improve housing affordability and stimulate new housing construction across Canada.

Overview of the New GST Rebate

Eligible first-time home buyers (“FTHB”) may receive a GST rebate of up to 100% of the 5% GST payable on the purchase of certain newly constructed homes (the “GST Rebate”). This may result in savings of up to $50,000.

The GST Rebate eliminates the GST for FTHB on a new home valued at up to $1 million and allows FTHB to reduce the amount of tax they pay on a new home valued between $1 million and $1.5 million.

The GST Rebate structure is as follows:

Purchase PriceGST Rebate
Up to $1,000,000Full rebate (up to $50,000)
$1,000,000 – $1,500,000Rebate phases out
$1,500,000+No rebate


Eligible Property Types

The GST Rebate applies to newly constructed or substantially renovated residential properties, including:

  • New homes from builders
  • Condominiums and townhomes
  • Owner-built homes
  • Substantially renovated homes

It is important to note that the GST Rebate does not apply to resale properties, investment or rental properties.


Eligibility Requirements

To be eligible for the GST rebate, the purchaser:

  • Must be a first-time home buyer;
  • Must not have had ownership of a principal residence in the preceding four calendar year;
  • Must use the property as their primary residence;
  • Must be an individual (not a corporation or trust for investment purposes); and
  • Must have entered into the agreement of purchase and sale on or after March 20, 2025, with construction beginning before 2031, and the completion and transfer taking place before 2036.

Agreements of purchase and sale signed before March 20, 2025, are not eligible for the GST Rebate. In addition, assignments where the original contract was signed before March 20, 2025, are also not eligible for the GST rebate.

Need Help Confirming Your Eligibility?

Understanding whether you qualify for the GST rebate can be complex, especially with new rules under Bill C-4.

Wilson Rasmussen LLP can help you:

  • Confirm if you meet all eligibility requirements
  • Review your purchase agreement for compliance
  • Ensure you maximize your GST rebate savings

Learn more about our real estate services, or call (604) 583-7917 to discuss your situation with our team.


Application Process

When buying from a builder/developer, the GST Rebate can be credited to the purchaser on completion date. In this case, the purchaser will not have to remit the GST payable on the purchase transaction on completion. Otherwise, when buying from an individual or non-builder, the purchaser must apply to the Canada Revenue Agency directly or with the help of their accountant using a Form GST190, GST/HST New Housing Rebate Application for Houses Purchased from a Builder, within two years of taking ownership.


Key Changes from Previous GST Rebate Regime

This new change significantly expands the previous GST rebate by increasing the maximum GST rebate from $6,300.00 to $50,000.00 and eligibility threshold from $350,000.00 to $1,000,000.00. As a result, FTHB looking to buy newly built homes will be afforded meaningful cost savings.


Practical Implications

This change is expected to increase demand for new construction and presale properties amongst FTHB. This may also cause a shift away from resale homes to new homes.

This enhanced GST rebate represents a significant shift in federal housing policy. Legal and tax advice should be obtained to confirm eligibility and ensure compliance. While federal rebates offer savings, buyers should stay informed about provincial changes, such as the new BC house flipping tax, which may affect short-term property sales.

At Wilson Rasmussen LLP, our experienced real estate lawyers are here to help you navigate these changes and otherwise to assist you with your real estate transactions. If you wish to obtain further particulars of the GST Rebate for FTHB, and its applicability, please do not hesitate to contact us.

– By Gurpreet Rai and Douglas Zorrilla

Not sure if you qualify for the GST rebate? Our experienced real estate lawyers can help you confirm your eligibility and maximize your savings under Bill C-4. Confirming your eligibility is simpler with expert guidance, especially as Wilson Rasmussen acquires Severide Law to expand our real estate legal services. Call us today at (604) 583-7917 or Contact us Wilson Rasmussen LLP in Surrey, BC to discuss your situation and explore your options.