Eliminate the GST for first-time home buyers (update)
On March 12, 2026, Bill C-4 received royal assent. Among the measures aimed at improving access to homeownership is an increase in the Goods and Services Tax (GST) rebate for first-time buyers or builders of new homes.
The effective date, initially set for May 27, 2025, has, however, been moved up to March 20, 2025. Thus, since the bill received royal assent, the date to use for determining eligibility for the rebate is now March 20, 2025.
As a reminder, an eligibility assessment for this rebate must be conducted in the following situations, among others:
- Purchase of a new home: the transfer of ownership must occur after March 19, 2025;
- Construction or major renovations of a home: the applicable date is the earlier of the following, provided it is after March 19, 2025:
1. the date the home is occupied as a residence
2. the date on which 90% of the work is completed
The enhanced rebate for first-time buyers of a new home allows for a full or partial GST refund of up to $50,000, as illustrated in the table below:
| PROPERTY VALUE | AVAILABLE REFUND | TOTAL AMOUNT |
| ≤ 1 000 000 $ | 100 % of the GST | Up to 50 000 $ |
| Between 1 000 000 $ and 1 500 000 $ | Proportional GST refund | Up to 49 999 $ |
| > 1 500 000 $ | None | 0 $ |
The CRA is currently updating its systems to allow for the processing of eligible applications for the period from March 20 to May 26, 2025. Applications may be submitted; however, please note that additional processing time is expected for requests relating to this period.
For more information on the eligibility criteria, we invite you to consult the information document available at the link below or to contact your FBL representative.
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