Further to OHBA’s recent updates regarding Bill C-4 and the removal of the federal portion of the GST for qualifying first-time home buyers, the Canada Revenue Agency (CRA) has confirmed that applications for the new First-Time Home Buyer (FTHB) GST/HST rebate are now open.

The rebate provides eligible first-time home buyers with a full or partial rebate of the GST, or the federal portion of the HST, on newly constructed or substantially renovated homes. Eligible purchasers may receive a rebate of up to $50,000.

Eligibility and Timing

The rebate is available for qualifying purchasers who entered into an Agreement of Purchase and Sale with a builder on or after March 20, 2025. The measure applies to new homes purchased from a builder, substantially renovated homes, and certain owner-built homes.

Applications for the rebate must generally be submitted within two years of taking ownership of the home or completing construction.

Implementation for Builders

Consistent with the existing GST/HST new housing rebate program, builders can credit the FTHB GST/HST rebate to eligible purchasers at closing and submit the completed rebate application to the CRA on the purchaser’s behalf.

For transactions that closed prior to Royal Assent of Bill C-4, builders could not credit the rebate at the time of closing. In these cases, eligible purchasers will need to apply directly to the CRA to receive the rebate.

Where a builder does not credit the rebate, purchasers may also apply directly through their CRA account or by submitting the applicable rebate application form to the CRA.

Additional Information

CRA has published additional guidance on eligibility and the application process, including the required forms for purchasers and builders.

Further details are available here: First-time Home Buyers’ (FTHB) GST/HST Rebate

The Government of Ontario, in its Fall Economic Statement released on November 6, 2025, confirmed its intention to match the federal program once implemented. We understand that there remains an outstanding federal regulation that must be in place before the Ontario portion of the rebate can be implemented.

In addition, there was a change to the retroactive eligibility date during the federal legislative process. While the program was originally announced as applying to agreements entered into on or after May 27, 2025, the final legislation amended the eligibility date to March 20, 2025. This change will also require ratification by the Ontario government prior to implementation.

Ontario has indicated that it has taken the necessary steps on its side to enable the program once the federal regulatory framework is finalized. Regardless of the timing of implementation, the provincial rebate is expected to apply retroactively to eligible agreements entered into on or after March 20, 2025.

We recognize that the delay in implementation may create uncertainty for some consumers; however, eligible purchasers will still be entitled to receive the rebate once the necessary regulatory steps are completed. OHBA will continue to monitor developments and will keep members updated as additional information becomes available.

OHBA will continue to provide updates to members as additional implementation guidance becomes available.