After months of legislative delays, Bill C-4, the Making Life More Affordable for Canadians Act, officially received Royal Assent on March 12th, 2026. The legislation removes or reduces the GST on qualifying new home purchases by eligible buyers, saving up to $50,000. Ontario noted in their 2025 Fall Economic Statement that they would follow suit and remove the provincial portion of HST for first time buyers on homes up to $1,000,000, but we do not have an official statement or legislation from Ontario since the March 12th Federal announcement at the time of writing this article. 

What the Enhanced GST Rebate Covers 

In Ontario, new homes are subject to HST at 13%, which combines the federal GST at 5% and the provincial portion at 8%. The First-Time Home Buyer (FTHB) GST Rebate specifically addresses the federal GST component.  

The FTHB GST Rebate is based on the purchase price of your new home. If you are purchasing a newly built home under $1 million, the GST is removed entirely. For homes priced between $1 million and $1.5 million, a partial rebate applies on a sliding scale, up to a maximum of $50,000. No rebate is available for homes priced above $1.5 million. 

The rebate applies to new home purchases from builders, certain owner-built homes, and certain purchases of shares in a cooperative housing corporation. It does not apply to resale properties.  

Do You Qualify as a First-Time Home Buyer? 

The CRA applies a specific definition to determine first-time buyer eligibility. As such, it is important to confirm your status before assuming the rebate applies to you. To qualify, you must: 

  • Be over the age of 18 
  • Be a Canadian citizen or permanent resident 
  • Not have lived in a home that you owned in the five years preceding the purchase 
  • Intend to move into the property as your primary place of residence 
  • Not have previously claimed the FTHB GST Rebate 

It is also worth noting that your spouse or common-law partner’s ownership history can affect your eligibility, even if you have never owned property personally. If you are unsure how this applies to your situation, speaking with a tax advisor before signing is the best way to avoid surprises at or after closing. 

Timing Rules You Need to Know 

To qualify, your agreement of purchase and sale must have been signed with a builder on or after March 20, 2025, and before 2031. Agreements signed prior to March 20, 2025, do not qualify, even if closing occurs after that date. 

For buyers who took ownership before Royal Assent was granted on March 12, 2026, the rebate does not apply automatically. You will need to apply directly to the CRA to claim the rebate and retain thorough documentation of your purchase agreement and closing documents. 

For purchases completed after March 12, 2026, your builder will be able to credit the rebate directly to you using official CRA forms, meaning the savings are reflected at closing rather than through a separate application. In most cases, builders will already factor the rebate into the purchase price shown on your agreement, so it is important to understand exactly how your agreement is structured before signing. 

What You Should Do Now 

If you have been waiting for this legislation before entering the housing market, the time to move forward is now. Take the following steps to position yourself well: 

  • Confirm your eligibility under the CRA’s definition of a first-time home buyer before signing any purchase agreement 
  • Review your purchase agreement carefully to understand how the rebate is being applied and whether GST is included in the stated purchase price 
  • Be mindful of purchase prices near the $1 million and $1.5 million thresholds, as upgrades or add-ons could reduce or eliminate your rebate 
  • If ownership transferred before Royal Assent, prepare to apply to the CRA directly and gather your supporting documentation 
  • Consult with a tax advisor to confirm eligibility and understand the full financial impact on your purchase 

Ontario Update (March 25, 2026): Temporary HST Relief on New Homes  

In addition to the federal GST changes introduced under Bill C-4, the Ontario government, in partnership with the Federal government, announced a separate, time-limited measure that will temporarily remove or reduce the HST on new homes purchased in Ontario – not just for first-time buyers. 

What this means for new home buyers

New home buyers in Ontario may benefit from both federal and provincial sales tax relief, depending on the purchase price. Under Bill C-4, eligible first-time buyers can receive federal GST relief on new homes priced up to $1.5 million. The newly announced joint measure temporarily removes the full HST on new homes priced under $1 million and reduces the HST on homes priced between $1 million and $1,850,000 for purchases made between April 1, 2026, and March 31, 2027. 

These programs operate independently, and eligibility will depend on the specific details of the purchase. 

If you need help understanding how the First-Time Home Buyer GST Rebate and Ontario’s temporary HST relief apply to your purchase, reach out to your trusted RLB Advisor for support.