You might be able to get a tax refund worth thousands of dollars if you bought a home in Canada for the first time. The new GST/HST rebate for first-time homebuyers (FTHB) is meant to help people buy homes by giving them a full or partial tax refund on the GST (or the federal part of the HST) they paid on homes that were built or significantly renovated.
That rebate could be worth as much as $50,000, depending on who is eligible. The Canada Revenue Agency (CRA) said that it is now taking applications. First-time homebuyers who meet the requirements should apply before the deadline.
The new rebate could be a big help if you just bought your first home.
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The rebate program gets rid of the GST (or the federal part of the HST) on new homes that cost up to $1 million. You can get some help by paying less tax if you bought a home worth between $1 million and $1.5 million.
What if you bought your home from a builder?
The CRA says, “Builders can credit the FTHB GST/HST rebate in the same way that they do the existing GST/HST new housing rebate when you take ownership of the home.” “This means that builders can give you credit for the rebate amount against the total amount you owe for your home.”
If not, you can apply online by signing in to your CRA account. Canadians who are also building their first homes can apply for the rebate online.
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When is the last day?
The agency is now working on processing applications, but be sure to remember the deadline so you don’t miss out.
You have up to two years from the date you buy the home to apply for the rebate if you signed a purchase agreement between March 22, 2025, and May 26, 2025. If you built your own home, you have two years from the time you finished it to apply.
To find out more about who can apply and how to do it, go to the CRA website. You can also learn about all the other ways that Canadian homeowners can save money on their taxes this year.
