Published 10 September 2026 · By Jatin Dua, Broker of Record, RE/MAX Quantum Realty
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The First-Time Home Buyers’ GST/HST Rebate is worth up to $50,000 on a new or substantially renovated home used as your primary place of residence. It is available in full where the value is at or below $1 million, phases down between $1 million and $1.5 million, and is nil at $1.5 million and above. The agreement of purchase and sale must be entered into on or after 27 May 2025 and before 2031, construction must begin before 2031 and be substantially completed before 2036. A first-time home buyer here means someone at least 18, a Canadian citizen or permanent resident, who has not lived in a home they or their spouse or common-law partner owned — anywhere in the world — in the calendar year or the four preceding calendar years.
What it is worth
| Value of the new home | Rebate |
|---|---|
| At or below $1,000,000 | Up to $50,000 — the full rebate |
| Between $1,000,000 and $1,500,000 | Phased down as value rises |
| $1,500,000 or above | Nil |
For most new Etobicoke condominium purchases the full rebate is in play, because the great majority of new condominium apartments in the Queensway, Humber Bay Shores, Mimico and Islington corridors sit below the $1 million threshold. That makes this the single largest piece of first-time buyer relief available on a new build here — larger than both land transfer tax rebates combined, by a wide margin.
Who qualifies
Three tests, all of which must be met:
- At least 18 years of age.
- A Canadian citizen or a permanent resident of Canada.
- Not having lived in a home — in or outside Canada — that you owned, or that your spouse or common-law partner owned, in the calendar year or in the four preceding calendar years.
Two features of that third test catch people out. It looks back four preceding calendar years plus the current one, not simply “four years ago.” And it counts property owned anywhere in the world, and property owned by a spouse or common-law partner, not only property owned by you.
The dates that decide it
- The agreement of purchase and sale must be entered into on or after 27 May 2025 and before 2031.
- Construction must begin before 2031.
- The home must be substantially completed before 2036.
The first of those is the one that matters to most buyers today, and it is a bright line: an agreement signed before 27 May 2025 does not qualify, however new the building is. If you are buying an assignment from an original purchaser, the date of the original agreement is a question to put to your lawyer and your accountant early, because it bears directly on whether the rebate is available and to whom.
How it interacts with the older new housing rebate
The GST/HST New Housing Rebate has existed for many years and is not limited to first-time buyers, but it is capped at much lower home values, which is why it has been of limited use at Toronto price points. The new first-time buyers’ rebate is a separate and far more generous measure aimed squarely at new construction.
Two practical points follow. First, on a new build the price quoted to you by a builder frequently assumes a rebate is being claimed on your behalf and assigned to the builder — read your agreement of purchase and sale carefully to see what has been assumed about you. Second, if your intention is to rent the unit out rather than occupy it as your primary place of residence, the treatment is different and the amounts involved are large. Do not let this be discovered at final closing.
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Jatin Dua, Broker of Record — RE/MAX Quantum Realty Inc., Brokerage. Not intended to solicit buyers or sellers currently under contract with another brokerage.
Stacking the relief available in Etobicoke
A first-time buyer purchasing a new condominium in Etobicoke may have three separate reliefs available, and they are administered by three different levels of government.
| Relief | Maximum | Applies to |
|---|---|---|
| First-Time Home Buyers’ GST/HST Rebate | Up to $50,000 | New or substantially renovated homes, subject to the value thresholds and dates |
| Ontario land transfer tax refund for first-time purchasers | Up to $4,000 | Any qualifying purchase, new or resale |
| Toronto municipal land transfer tax rebate | Up to $4,475 | Any qualifying purchase inside the City of Toronto, which includes all of Etobicoke |
Each has its own eligibility rules and its own definition of a first-time buyer, and they do not align perfectly. Confirm each separately with your lawyer and your accountant rather than assuming that qualifying for one means qualifying for all three.
What this does not change
The rebate reduces tax. It does not change any of the other economics of a new condominium purchase, and it is worth being clear about that before it becomes a reason to buy something you otherwise would not.
- Occupancy fees still apply. Between moving in and final closing you pay interest on the unpaid balance, estimated property tax and estimated common expenses. None of it builds equity.
- Development and education levies still apply, and if your agreement does not cap them the exposure is open-ended.
- Both land transfer taxes still apply at final closing, in cash. On an $800,000 purchase that is $12,475 provincially and $12,475 municipally.
- The corporation still has no history. A new building has no reserve fund track record, no status certificate you could have read, and a first-year budget that is a projection rather than a result.
What to do, in order
- Establish with an accountant, in writing, whether you meet the first-time buyer test — including your spouse or partner’s ownership history, anywhere in the world.
- Check the value of the home against the $1 million and $1.5 million thresholds.
- Confirm the agreement date requirement applies to your purchase, and on an assignment ask specifically about the original agreement date.
- Read what your agreement of purchase and sale assumes about rebates being claimed and assigned.
- Confirm your actual intention — primary residence or rental — and get the treatment of that in writing.
- Check the two land transfer tax rebates separately, with your lawyer.
- Use the ten-day rescission period on a new condominium purchase to have a lawyer read the whole agreement, not just the rebate clauses.
Frequently asked questions
How much is the first-time home buyers’ GST rebate?
Up to $50,000. The full rebate is available where the value of the new or substantially renovated home is at or below $1 million; between $1 million and $1.5 million the rebate phases down as value rises; and at $1.5 million or above it is nil. The home must be used as the buyer’s primary place of residence.
Who counts as a first-time home buyer for this rebate?
Someone who is at least 18, is a Canadian citizen or permanent resident, and has not lived in a home — in or outside Canada — that they owned, or that their spouse or common-law partner owned, in the calendar year or the four preceding calendar years. The look-back counts a partner’s ownership and counts property anywhere in the world.
When must I have signed the agreement?
The agreement of purchase and sale must be entered into on or after 27 May 2025 and before 2031. Construction must begin before 2031 and the home must be substantially completed before 2036. The 27 May 2025 start date is a bright line, so an earlier agreement does not qualify however new the building is.
Does the rebate apply to resale condos?
No. It applies to new or substantially renovated homes, which is why it matters for pre-construction and newly completed buildings in the Queensway, Humber Bay Shores, Mimico and Islington corridors, and not for a resale purchase in an established corporation. First-time buyers of resale property still have the two land transfer tax rebates.
What if I am buying an assignment?
Ask your lawyer and accountant early, because the date of the original agreement of purchase and sale bears on eligibility and on who may claim. Assignments also carry their own tax questions — profit can be treated as business income rather than a capital gain, and HST can apply to the assignment itself. Do not assume the rebate travels with the unit.
Can I claim it if I am buying to rent the unit out?
The rebate is for a home used as the buyer’s primary place of residence, so an investment purchase is treated differently and the amounts involved are large. Decide your actual intention before you sign, tell your lawyer and your accountant, and get the treatment confirmed in writing rather than discovering it at final closing.
Does this stack with the land transfer tax rebates?
They are separate reliefs administered by different levels of government: the GST/HST rebate of up to $50,000, the Ontario land transfer tax refund of up to $4,000, and the Toronto municipal rebate of up to $4,475, the last of which applies throughout Etobicoke. Each has its own eligibility rules and its own definition of a first-time buyer, so confirm each separately.
My spouse owned a condo five years ago. Do we still qualify?
It depends on precisely when they lived in it as an owner, because the test looks at the current calendar year plus the four preceding calendar years, and it counts a spouse’s or common-law partner’s ownership. This is the most common reason a claim people assumed was straightforward is not. Establish it with an accountant before signing, since the agreement date itself is one of the eligibility tests.
Sources
- Canada Revenue Agency — First-time home buyers’ GST/HST rebate — the maximum of $50,000, the $1 million full-rebate threshold, the phase-out to $1.5 million and the primary residence requirement. Accessed 10 September 2026.
- Department of Finance Canada — GST relief for first-time home buyers — the 27 May 2025 agreement start date, the pre-2031 agreement and construction deadlines, the pre-2036 completion deadline, and the definition of a first-time home buyer. Accessed 10 September 2026.
- Ontario Ministry of Finance — Land Transfer Tax — the first-time purchaser refund of up to $4,000. Accessed 10 September 2026.
- City of Toronto — Municipal Land Transfer Tax — the rebate of up to $4,475. Accessed 10 September 2026.
Related reading
- Closing costs on an Etobicoke condo in 2026
- Pre-construction vs resale condos in Etobicoke
- Interim occupancy explained
- Assignment sales and the tax that follows them
- The Etobicoke condo buying guide
About the author — Jatin Dua, Etobicoke real estate agent
I am Jatin Dua, Broker of Record at RE/MAX Quantum Realty Inc., Brokerage, Unit 101, 799 The Queensway in Etobicoke, with more than four years of active GTA transactions and over $100M in sales volume. A rebate this size is worth confirming properly before you sign, because the agreement date is itself one of the tests.
Reach me at connect@jatindua.com or 833-330-1925.