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