First-Time Home Buyer GST Rebate 2027: Up to $130,000

Published 2 November 2026 · By Jatin Dua, Broker of Record, RE/MAX Quantum Realty

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By Jatin Dua · Broker of Record, RE/MAX Quantum Realty · Updated 2 November 2026 · 11 min read — How first-time buyers get the full 13% HST back on a new GTA home up to $1 million in 2027, and when the March 31 date matters.

Short answer

In 2027, a first-time buyer of a new Ontario home up to $1 million can get the full 13% HST back: up to $50,000 from the federal GST rebate and up to $80,000 from Ontario’s matching rebate. Both shrink between $1 million and $1.5 million. Agreements must be signed after March 20, 2025 and before 2031.

This guide is for first-time buyers in Toronto and the GTA who are looking at a brand-new condo, townhouse or house in 2027. You will learn exactly how much of the 13% HST you get back, who counts as a first-time buyer, how the rebate is paid on closing, and why the date you sign matters less for you than for repeat buyers.

What is the first-time home buyers’ GST/HST rebate?

When you buy a resale home in Ontario, there is no HST on the price. When you buy a new home from a builder, there is. In Ontario that tax is 13%: a 5% federal part (the GST) and an 8% provincial part.

The federal First-Time Home Buyers’ (FTHB) GST/HST rebate gives back the 5% federal part on a qualifying new home. The Canada Revenue Agency (CRA) says it covers 100% of the GST on a home valued up to $1 million, to a maximum of $50,000. It shrinks between $1 million and $1.5 million and disappears at $1.5 million.

This is no longer a proposal. Parliament passed it in the Making Life More Affordable for Canadians Act, which received royal assent on March 12, 2026, and the CRA is now taking applications.

Is there an Ontario version too?

Yes. Ontario added its own first-time buyer rebate on the 8% provincial part. A federal regulation published in the Canada Gazette in June 2026 (SOR/2026-94) put it into law. It follows the same eligibility rules as the federal rebate and is worth up to $80,000. Together, the two rebates can remove the full 13% HST on a new home up to $1 million.

Who counts as a first-time home buyer for the GST rebate?

The CRA test is different from the land transfer tax test, so check it on its own. To qualify you must:

Be at least 18 years old.
Be a Canadian citizen or permanent resident.
Not have lived, in this calendar year or the four before it, in a home that you or your spouse or common-law partner owned. This applies to homes inside or outside Canada.
Never have received an FTHB GST/HST rebate before, and your spouse or partner must not have received one either.
Buy the home as your primary residence and be the first person to live in it after it is finished.

The CRA checks your status on the day ownership (or possession) transfers to you, not the day you sign. If you sell a home and buy pre-construction, count the years carefully.

What if I am buying with someone who already owned a home?

The CRA’s guide RC4028 says at least one buyer must be a first-time buyer who will live in the home as a primary residence. Only one person can be the claimant, and it must be the first-time buyer. If you are a couple, remember the spouse rule above: a home your spouse owned and you lived in during the look-back period can disqualify you.

How much is the GST/HST rebate on a new home in 2027?

The federal rebate is the full 5% up to $1 million. Between $1 million and $1.5 million it falls in a straight line. The CRA’s own example: a $1.25 million home gets $25,000, half the maximum. The Ontario rebate follows the same shape on the 8% part.

New home price (before HST)	Total HST at 13%	Federal FTHB rebate	Ontario rebates (8% part)	HST left to pay
$600,000	$78,000	$30,000	$48,000	$0
$800,000	$104,000	$40,000	$64,000	$0
$1,000,000	$130,000	$50,000	$80,000	$0
$1,200,000	$156,000	$30,000	$48,000	$78,000
$1,250,000	$162,500	$25,000	$40,000	$97,500

Source: CRA FTHB rebate pages and Guide RC4028 (Oct 2026); Canada Gazette SOR/2026-94. My arithmetic, for a qualifying first-time buyer, ignoring Ontario’s temporary enhanced rebate. Your builder’s agreement and your lawyer’s numbers decide the real figure.

Above $1 million, the gap opens fast. Every $100,000 over the line costs you $26,000 of combined rebate on top of the extra price. If you are negotiating near $1 million, that is a real argument to bring to the builder.

What are the dates for the first-time buyer GST rebate?

The dates run on your agreement, not your closing. According to the CRA and the Gazette notes:

Your agreement of purchase and sale must be signed on or after March 20, 2025, and before 2031. Some early articles quoted a later date in May 2025; the law as passed uses March 20, 2025.
Construction must start before 2031.
The home must be substantially completed, and ownership must transfer to you, before 2036.

So anyone signing for a new home in 2027 is inside the federal window. Most GTA pre-construction closes years after signing, which is why the 2036 completion date exists. The Ontario first-time buyer rebate uses the same window.

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How does the March 31, 2027 deadline affect first-time buyers?

Ontario also runs a temporary enhanced rebate open to all buyers of a new home they will live in, first-time or not. CRA Notice 346 says it covers agreements signed from April 1, 2026 to March 31, 2027. Paired with Ontario’s New Home Affordability Payment, it can return up to $130,000 of HST, including a flat amount on homes from $1 million to $1.5 million.

For a first-time buyer, the deadline matters mainly above $1 million. Below that line you already get the full 13% back through the two first-time buyer rebates, whenever you sign before 2031.

First-time buyer, new home at	Signed by March 31, 2027	Signed after March 31, 2027
$900,000	$117,000 back (all of the HST)	$117,000 back (all of the HST)
$1,200,000	Up to $130,000 back	About $78,000 back
$1,250,000	Up to $130,000 back	About $65,000 back

Source: CRA Notice 346 (August 2026); Ontario 2026 Economic Outlook and Fiscal Review annex (29 October 2026); CRA FTHB rebate rules. My arithmetic, assuming every condition is met.

Ontario has also said its older new housing rebate (up to $24,000) will generally end for agreements signed on or after April 1, 2027. That rebate is what keeps a floor under first-time buyers between about $1.35 million and $1.5 million today, so anyone shopping in that range should have a lawyer run both scenarios before signing.

How do you claim the first-time buyer GST rebate?

In most GTA new-home deals, the builder credits the rebates against your price on closing and then claims them from the CRA. The CRA guide says only the builder who sold you the home can do this, and the builder must confirm you qualify first. The builder files Form GST190 with the Ontario schedule RC7190-ON, plus your statement of adjustments and signed agreement.

If the builder does not credit it, you apply to the CRA yourself with the same forms. You have two years from the date ownership transfers to you.

Ontario’s New Home Affordability Payment works differently. The Province pays it separately, it is reduced by any federal first-time buyer rebate, and Ontario expects to start issuing payments in early 2027. No separate application is needed if you consent on the rebate form to the CRA sharing your details.

Does the rebate work on assignments, owner-built homes and co-ops?

Owner-built homes and substantial renovations can qualify if the work starts on or after March 20, 2025 and before 2031, with your own forms (GST191 and RC7191-ON). Co-op shares in a new building can qualify too. Mobile and floating homes may get only a partial rebate.

Assignments are trickier. An assignor cannot credit the rebate to you; only the builder can. For the Ontario enhanced rebate, Notice 346 says both the original agreement and the assignment must fall inside the April 2026 to March 2027 window. I covered the deposit wording that protects you in my post on GST/HST clauses in assignment sales.

Watch out

Many builders quote prices “HST included, net of rebates assigned to the builder.” If you turn out not to qualify, for example because your spouse owned a home you lived in three years ago, the builder can charge you the rebate amount on closing. CRA Notice 346 adds that where a builder knew or should have known a buyer did not qualify, the builder and the buyer can both be liable to repay the rebate. Confirm your status with a lawyer before you sign, not at closing.

What new homes in the GTA fall under the $1 million line?

New-build prices are set by builders and are not in MLS sold data, so treat resale numbers only as a rough guide to where the market sits. Through October 2026, median resale condo apartment prices were under $1 million in almost every GTA city and Toronto district, while detached medians were above it in most Toronto districts and in many 905 cities.

Area	Condo apartment median	Freehold townhouse median	Detached median
Toronto C01 (downtown)	$600,000	$1,275,000	$1,500,000
Mississauga	$485,000	$880,000	$1,225,000
Brampton	$415,000	$755,000	$950,000
Vaughan	$530,000	$1,014,500	$1,415,000
Milton	$515,000	$810,000	$1,130,000

Source: TRREB MLS data via REALM, January to October 2026 (median sold prices, resale only). City and district level, not neighbourhood figures.

In practice, most new condos and many new townhouses in Brampton, Milton and Mississauga sit inside the full-rebate band. New detached homes often do not. Compare that against the land transfer tax refund for first-time buyers, which applies to new and resale homes alike.

My take

For a first-time buyer under $1 million, the 2027 rebate picture is strong and does not end on March 31, so do not let a sales centre rush you with that date. Spend the time instead on the project: the builder’s track record, the deposit structure, the occupancy period and the closing cost list. The rebate saves you money only if the home closes. Above $1 million, the March 31 date is real money, and I would want a lawyer’s written numbers before signing. My older explainer on who gets the full $50,000 and the four-rebate eligibility checker help you test your own case.

Is the GST rebate changing in 2027?

As of November 10, 2026, no change has been announced. The federal Budget 2026 lists the FTHB rebate as an existing support saving buyers up to $50,000 and does not change its rules. The changes to watch are Ontario’s: the enhanced rebate closes for agreements after March 31, 2027, and the older $24,000 rebate is set to end for new agreements from April 1, 2027. Closing costs on a new build are a separate list; I broke them down in closing costs on a new build in Ontario.

What to do next

Check your first-time buyer status against the CRA’s four-year test, including your spouse’s homes.
Get the builder’s price in writing both before and after HST and rebates, and ask whether rebates are assigned to the builder.
If your price is above $1 million, ask a real estate lawyer to compare signing before and after March 31, 2027.
Run your mortgage numbers on the after-rebate price, then add land transfer tax and builder closing adjustments.
Keep copies of your agreement and statement of adjustments; you need them if you must claim from the CRA within two years.

Need help with this? Talk to me.

I’m Jatin Dua, Broker of Record at RE/MAX Quantum Realty, and I’m the best agent to do this kind of work for you in Toronto and across the GTA. Over $100 million in GTA sales and 100+ families helped sell. Feel free to contact me any time: call or text 833-330-1925 or email [email protected].

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Frequently asked questions

How much is the first-time home buyer GST rebate in 2027?

Up to $50,000. The federal first-time home buyers’ rebate returns the full 5% GST on a qualifying new home up to $1 million, shrinks between $1 million and $1.5 million, and is zero at $1.5 million. In Ontario, a matching provincial rebate of up to $80,000 can remove the 8% part too, so a first-time buyer can get back the full 13% HST on a new home up to $1 million in 2027.

Is the GST rebate for first-time buyers law yet?

Yes. The federal rebate became law when the Making Life More Affordable for Canadians Act received royal assent on March 12, 2026, and the CRA now accepts applications. Ontario’s matching rebate on the 8% provincial part was put into law by federal regulation SOR/2026-94 in June 2026. Both apply to agreements signed on or after March 20, 2025 and before 2031.

Does the first-time buyer HST rebate apply to resale homes in Ontario?

No. There is no HST on the price of a resale home in Ontario, so there is nothing to rebate. The rebate is for newly built or substantially renovated homes bought from a builder, owner-built homes, and shares in new co-op housing. Resale first-time buyers can still claim the Ontario land transfer tax refund of up to $4,000, plus up to $4,475 in Toronto.

Can I get the GST rebate if my spouse owned a home before?

Maybe not. The CRA test fails if, in the current year or the four calendar years before, you lived in a home owned by you or your spouse or common-law partner. It also fails if either of you received this rebate before. If your partner owned a home years ago and you never lived in it during that window, you may still qualify. Ask a lawyer to confirm before signing.

Do both buyers have to be first-time buyers for the GST rebate?

No. The CRA’s Guide RC4028 says at least one purchaser must be a first-time home buyer who will live in the home as a primary residence and be its first occupant. Only one person can be the claimant, and it must be the first-time buyer. In Ontario in 2027, the spouse rules still apply, so a couple should check both partners’ history.

Does the March 31, 2027 HST deadline matter for first-time buyers?

Mostly above $1 million. A first-time buyer of a new home up to $1 million gets the full 13% HST back through the federal and Ontario first-time rebates whenever they sign before 2031. Between $1 million and $1.5 million, signing by March 31, 2027 under Ontario’s enhanced rebate can return up to $130,000, versus about $78,000 at $1.2 million after the deadline.

How do I claim the first-time buyer GST rebate on a new home?

Usually the builder credits it on closing. The builder confirms you qualify and files Form GST190 with Ontario schedule RC7190-ON. If the builder does not credit it, you apply to the CRA yourself with the same forms within two years of the date ownership transfers to you. Ontario’s New Home Affordability Payment is paid separately by the Province, starting in early 2027.

Can I get the first-time buyer GST rebate on an assignment sale?

Possibly, but only the original builder can credit it to you; an assignor cannot. You must still meet every first-time buyer condition and be the first person to live in the home. For Ontario’s separate enhanced rebate, both the original agreement and the assignment must be signed between April 1, 2026 and March 31, 2027. Get a lawyer to review the assignment wording.

What is the maximum home price for the GST rebate for first-time buyers?

$1.5 million. At or above $1.5 million there is no federal first-time buyer rebate. From $1 million to $1.5 million it falls in a straight line, so a $1.25 million home gets $25,000, half the $50,000 maximum, according to the CRA. The Ontario first-time rebate on the 8% part follows the same phase-out in 2027.

Sources

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