GST/HST rebate
New homes attract GST. Resale homes generally do not.
For first-time buyers of qualifying new construction, a federal rebate can remove some or all of that GST — which materially changes the comparison between a new build and a resale property.
On a qualifying new home priced at $1 million or less, an eligible first-time buyer may recover the full 5% GST — a maximum rebate of $50,000.
Between $1 million and $1.5 million the rebate phases out on a straight-line basis. At the $1.25 million midpoint that works out to roughly half the maximum.
At $1.5 million or above, no rebate is available.
Figures verified August 2026 against the Canada Revenue Agency. This is a federal program and its rules can change.
Broadly, the rebate is aimed at individuals buying, building or substantially renovating their first home. Key conditions include:
Those dates matter. A buyer who signed with a builder before 20 March 2025 is generally outside the program regardless of when the home completes.
Buyers often compare a new build and a resale home on list price alone. For an eligible first-time buyer, GST is a real part of the cost of the new home — and the rebate can remove a meaningful portion of it.
That does not automatically make new construction the better purchase. It does mean the comparison should be made after tax rather than before it.
Eligibility depends on your circumstances, the property, the builder's agreement and the current program rules — none of which we can confirm for you.
Verify eligibility with the Canada Revenue Agency, your lawyer or a qualified tax professional before treating the rebate as part of your budget. We are not tax advisors and nothing here is tax advice.
We'll walk the numbers with you, and Al can structure the financing around a builder's timeline.
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