OHBA is providing members with an update following last evening’s confirmation that Bill C-4 has received Royal Assent. The legislation implements the federal government’s commitment to remove the federal portion of the GST on qualifying new homes valued up to $1 million for first-time home buyers, with a phased reduction for homes valued between $1 million and $1.5 million.

The measure comes nearly a year after the federal government first announced its intention to introduce GST relief for first-time buyers.

Implementation Details

The Canada Revenue Agency (CRA) has advised that the required forms to claim the enhanced GST rebate will be available shortly, expected within the next several days. CRA has also indicated that it will be hosting a builder-focused webinar to outline the process and administrative requirements associated with the rebate.

The First-Time Home Buyer (FTHB) GST rebate will apply to qualifying purchasers where the Agreement of Purchase and Sale was entered into on or after March 20, 2025 and before 2031. The March 20, 2025 date reflects the date on which the federal government first announced its intention to introduce GST relief for first-time home buyers. During the legislative process, the eligibility window was aligned with that announcement date to ensure purchasers who entered into agreements following the policy announcement would be eligible for the rebate.

Where ownership of the home transferred prior to Royal Assent, purchasers will be required to apply directly to the CRA to receive the rebate. For transactions moving forward, builders will be able to credit the rebate to eligible purchasers once the CRA forms become available.

Ongoing Advocacy

While this measure represents a first step, OHBA continues to advocate for broader tax relief on all new housing, including the removal of sales taxes on all new homes in order to improve affordability and support increased housing supply.

OHBA and our local HBAs across the province are also continuing to advocate for provincial PST relief on new housing construction. We remain optimistic that the provincial government will include measures to address housing affordability and supply in the upcoming Ontario Budget scheduled to be released on March 26, 2026.

Additional implementation details are expected shortly and will be shared with members as they become available.