Buying your first new home? GST/HST rebates could make a meaningful difference.

When you're buying your first home, every dollar matters.

You're saving for a down payment, planning for closing costs, and trying to understand what your mortgage payment will look like. If you're considering a newly built home or pre-construction property in Ontario, GST/HST rebates could make a significant difference to your purchase.

For eligible first-time buyers, combined federal and Ontario first-time buyer rebates can provide up to $130,000 in sales-tax relief on qualifying new homes.

But the amount you receive — and when you benefit from it — depends on your purchase agreement, the property, and your eligibility. Before building a budget around a rebate, it's important to understand how it applies.

What relief is available?

The federal first-time home buyers' rebate covers the 5% GST, or federal portion of HST, on eligible new homes priced at $1 million or less, up to $50,000. The rebate gradually decreases between $1 million and $1.5 million and is unavailable at $1.5 million or above.

Ontario also offers eligible first-time buyers relief on the provincial portion of HST, up to $80,000, under corresponding eligibility conditions.

For an eligible $800,000 purchase before tax, the combined relief could cover $104,000 in HST. That's total tax relief — not necessarily an additional $104,000 discount from the builder's advertised price.

You must be buying a home to live in

The first-time buyer rebates are intended for qualifying new or substantially renovated homes used as your primary residence.

Generally, you must be at least 18, a Canadian citizen or permanent resident, and meet the ownership-history test. That test looks at whether you lived in a home owned by you or your spouse or common-law partner during the current calendar year or the previous four calendar years.

For a typical builder purchase, eligibility is assessed when ownership transfers. You must also be the first individual to occupy the completed home as a residence, and neither you nor your spouse or common-law partner can have previously received the federal first-time buyer rebate.

There's also a temporary Ontario opportunity

Ontario's enhanced rebate applies to qualifying builder agreements signed between April 1, 2026 and March 31, 2027, subject to construction and tax-payment deadlines.

Together with Ontario's affordability payment, eligible purchases can receive up to $130,000 in combined relief, with that maximum available for qualifying homes priced from $1 million through $1.5 million. These programs coordinate with existing rebates. You cannot simply add every maximum together.

How does this help you buy?

When a builder credits eligible relief at closing, it can reduce the amount payable to complete the purchase. That could make a meaningful difference to your financing plan.

However, confirm whether rebates are already included in the quoted price and whether the builder will credit the additional relief or you will need to claim it afterward. A future refund doesn't automatically provide funds for today's deposit or closing.