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What is the first-time home buyers’ rebate

The FTHB GST/HST rebate is for eligible individuals who are buying, building or substantially renovating their first home.

This first home must be:

Depending on the value of the home, the individual could recover up to 100% of the GST (or federal portion of the HST) paid, up to $50,000.

For new homes valued:

  • At or below $1 million, the rebate is up to 100% (up to a maximum rebate of $50,000)
  • Between $1 million and $1.5 million, the maximum rebate is gradually reduced
  • At or above $1.5 million, there is no rebate
Example of a reduced rebate

An eligible individual purchases a new home for $1.25 million.

A new home valued at $1.25 million is the mid-point between $1 million and $1.5 million, and is eligible for 50% of the maximum rebate of $50,000.

The individual is eligible for a rebate of $25,000 (which is 50% of the $50,000 maximum rebate) when all the conditions for the rebate have been met.

For more details on the calculation, refer to: Guide RC4028, GST/HST New Housing Rebate

Substantial renovation (for the purposes of new housing rebates)

Substantial renovation (for the purposes of new housing rebates) – Major changes have to be made to meet the definition of a substantial renovation. In a major renovation project, the interior of a building is essentially gutted. Generally, 90% or more of the interior of the existing housing has to be removed or replaced to qualify as a substantial renovation (the 90% test).

You do not have to remove or replace the foundation, exterior and interior supporting walls, roof, floors, and staircases to meet the 90% test.

Only livable areas count towards a substantial renovation, including finished basements and finished attics. Livable areas do not include garages or crawl spaces. Work done to partially complete a basement but not make it a livable basement does not count toward the 90% test.

If you converted a non-residential property into a house or constructed a major addition onto an existing house and, along with that addition, you also substantially renovated the existing house, the property would generally meet the definition of a substantial renovation for the purposes of this rebate.

Primary place of residence

Primary place of residence of an individual generally means the residence that the individual lives in on a permanent basis. An individual may have more than one residence, but is considered to have only one primary place of residence. For more information, see GST/HST Policy Statement P-228, Primary Place of Residence.

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2026-03-30