If you’re a first-time buyer looking at a newly built home, Ottawa just handed you one of the biggest incentives in years. The First-Time Home Buyers’ GST/HST rebate — which received Royal Assent in March 2026 — can refund up to $50,000 of the GST paid on a new home. And it doesn’t stand alone: paired with 30-year insured amortizations and the $1.5 million insured mortgage cap, first-time buyers in 2026 have a genuinely different math problem than buyers did just two years ago.

Here’s how the rebate works, who qualifies, and how to combine all three programs.

What the rebate actually pays

The rebate applies to the 5% GST (or the federal portion of HST) on a newly built home purchased from a builder, an owner-built home, or a share in a new co-operative housing project.

The amount depends on the price of the home:

• Up to $1 million: the full GST is rebated. On an $800,000 new build, that’s $40,000 back. At $1 million, you hit the maximum $50,000.
• Between $1 million and $1.5 million: the rebate phases out in a straight line — you lose $10,000 of rebate for every $100,000 above $1 million. A $1.25 million home gets a 50% rebate, or up to $25,000.
• $1.5 million or more: no rebate.

If your new home is in Ontario, there’s a second win: a provincial top-up rebate on a portion of the 8% provincial part of the HST, which can be claimed at the same time as the federal rebate.

One practical note: many builders advertise prices with GST “included” and net of rebates they expect to claim on your behalf. Before you sign, get clear on whether the price reflects the rebate — it changes both your true cost and your down payment math.

Who counts as a first-time buyer

The CRA’s definition is stricter than most people assume. You must meet all of the following:

• Be at least 18 and a Canadian citizen or permanent resident
• Not have lived in a home that you or your spouse/common-law partner owned, as your primary residence, in the calendar year you take ownership or in the previous four calendar years
• Neither you nor your spouse has previously received this rebate

That four-calendar-year lookback trips people up. If you sold a home in June 2022 and take ownership of a new build in August 2026, you are not eligible — 2022 falls within the previous four calendar years. Take ownership in early 2027 instead, and you qualify. For buyers near the boundary, the closing date can be worth tens of thousands of dollars.

Note the test also applies to your spouse’s ownership history — if your partner owned a home you lived in during the lookback window, neither of you qualifies, even if the new home is in your name alone.

The home has to check boxes too

The rebate is for new construction only — resale homes don’t qualify. Eligible purchases include newly built or substantially renovated homes from a builder (detached, semi, townhouse, or condo), owner-built homes, new homes on leased land (20-year-plus lease or option to buy), and new co-op units.

Timing rules apply: your purchase agreement must be signed on or after March 20, 2025 and before 2031, construction must be substantially completed before 2036, and you must be the first person to occupy the home and use it as your primary residence. Investment properties don’t qualify.

Stacking it: the 30-year amortization and the $1.5M insured cap

The rebate is one leg of a three-legged stool for first-time buyers:

1. 30-year insured amortizations. First-time buyers can take a 30-year amortization on any insured purchase — and for new builds, it’s available even to repeat buyers. The longer schedule cuts your monthly payment meaningfully, though you’ll pay more interest over the life of the mortgage and a modest insurance premium surcharge.

2. The $1.5 million insured price cap. Since December 2024, you can buy with less than 20% down on homes up to $1.5 million (it used to be $1 million). Minimum down payment is 5% on the first $500,000 and 10% on the balance.

3. The GST rebate on top.

What that looks like on a real purchase

Take a first-time buyer purchasing a $900,000 new-build townhome:

• GST rebate: up to $45,000 of GST relief (5% of $900,000)
• Minimum down payment: $65,000 (5% of $500K + 10% of $400K) — insured, thanks to the $1.5M cap
• 30-year amortization: on the roughly $860,000 insured mortgage (including the insurance premium), stretching from 25 to 30 years trims the monthly payment by several hundred dollars at today’s rates

Two years ago, this same buyer would have needed 20% down ($180,000), qualified only for a 25-year amortization, and received no federal GST relief. The programs compound.

Watch-outs before you sign

• You still need to qualify. The stress test applies — you’ll be tested at the higher of your contract rate plus 2% or 5.25%, with the usual debt-service and credit requirements.
• The rebate isn’t automatic. Either the builder credits it to you at closing or you apply to the CRA yourself. Confirm which, in writing.
• One rebate per couple, ever. If either spouse has claimed it before, it’s gone.
• Timing is strategy. The ownership-transfer date determines your first-time-buyer status. If you’re close to the four-year boundary, talk to a professional before you commit to a closing date.

The bottom line

For the right buyer — a true first-timer purchasing a new build under $1 million — this rebate is as close to free money as federal housing policy gets. But the eligibility rules are precise, the phase-out math matters above $1 million, and how it interacts with your down payment, amortization, and closing date is exactly the kind of thing worth mapping out before you sign a builder’s agreement.

Thinking about a new build? Let’s run your numbers — the rebate, the down payment, and the payment on a 30-year amortization — before you commit. Contact me for a no-obligation review of your options.

Ted Vailas is a mortgage broker with Dominion Lending Centres. Rates and program details change — this article reflects rules as of July 2026 and is general information, not financial advice.

Sources: CRA — What is the FTHB rebate · CRA — Who can apply · Department of Finance announcement · Ratehub — 30-year amortizations

If your mortgage comes up for renewal this year, you’re in good company — and, unfortunately, in for some sticker shock. Canada’s long-anticipated renewal wave has officially peaked, with roughly 1.8 million mortgages renewing in the 12 months surrounding mid-2026. Most of those borrowers locked in five-year fixed rates of 2.5% or less back in 2020–2021. Today, the best five-year fixed rates sit around 4%.

The result? According to Ratehub, fixed-rate borrowers renewing this spring are paying an average of $622 more per month — a 24% jump. But here’s the good news: that “average” includes a lot of people who simply signed the renewal letter their bank mailed them. With the right strategy — and a recent rule change most homeowners don’t know about — you can renew for far less. Here’s how.

Why 2026 Renewals Hurt So Much

The math is simple, even if it isn’t pleasant. A homeowner who took a $500,000 mortgage at 2.5% in 2021 is renewing into a market where rates are roughly 1.5 percentage points higher. On that mortgage, moving from 2.5% to 4.0% adds roughly $300 or more to the monthly payment — more if your balance is larger or your original rate was lower.

The Bank of Canada has held its policy rate at 2.25% since October 2025, and most economists expect it to stay there through the rest of 2026 — with the next announcement coming July 15. That means the rates on offer today are likely close to the rates you’ll see at your renewal date. Waiting and hoping for a big drop is not a strategy.

The Rule Change That Works in Your Favour: No More Stress Test on Switches

This is the single biggest opportunity for 2026 renewers, and many still don’t know about it.

Since November 2024, OSFI no longer requires federally regulated lenders to apply the mortgage stress test when you switch lenders on a straight renewal of an uninsured mortgage — same balance, same amortization. Before this change, many homeowners felt trapped with their existing bank because they couldn’t requalify at the stress-test rate. Now you can shop your mortgage across every lender in the market without re-proving your income against a rate 2% higher than what you’ll actually pay.

Translation: your bank’s renewal letter is now competing with the entire market, whether they like it or not.

5 Ways to Pay Less at Renewal

1. Never sign the first renewal letter

Your lender’s renewal offer is rarely their best rate — it’s the rate they hope you’ll accept without shopping around. Signing it can also lock in the new (higher) rate immediately, costing you your remaining months at your old low rate. Read it, then set it aside.

2. Start 120 days early

Most lenders will hold a rate for up to 120 days. Starting four months before your renewal date lets you lock today’s rate as insurance — if rates rise before your renewal, you’re protected; if they fall, you take the lower one. Homeowners who wait until the final month almost always pay more.

3. Shop the switch

On a $600,000 mortgage, moving from a posted renewal rate of 5.25% to a discounted 4.60% saves roughly $3,900 a year — nearly $19,500 over a five-year term. A mortgage broker can shop dozens of lenders at once, including monoline lenders that often beat the big banks and cover switching costs.

4. Consider variable — the gap is the widest in years

The best five-year variable rates are around 3.45%, nearly a full point below fixed. With the Bank of Canada expected to hold steady, variable-rate borrowers keep that saving from day one — though you should be comfortable with the (small but real) risk of a hike in late 2026 or 2027.

5. Extend your amortization if cash flow is tight

If the new payment strains your budget, re-extending your amortization at renewal lowers the monthly payment. You’ll pay more interest over time, but you can shorten it again later with prepayments once rates or your finances improve. It’s a pressure valve — better than falling behind.

What This Means for You

A 2026 renewal doesn’t have to mean a $622 payment shock. The homeowners who pay the most are the ones who sign the first offer; the ones who pay the least start early, shop widely, and use the new no-stress-test switch rules to their advantage.

Your renewal is likely the single biggest expense decision you’ll make this year — it deserves more than a signature on a form letter.

Renewing in the next 12 months? Send me your renewal date and current rate, and I’ll shop the market for you — at no cost to you. Contact me here or call 204-890-2446 for a free renewal review.