First-time buyer GST/HST new housing rebates in Canada: who qualifies and how much it changes cash to close

Buyers pick a resale because the listing looks cheaper, then discover the new-build next door had a five-figure GST/HST rebate they never modelled. The other mistake is counting a rebate on a 2012 freehold that never charged GST. This page is the cash-to-close lever: who the rebates are for, which threshold still dies at $450,000, and which 2025–2026 first-time rules raised the ceiling.

CRA’s FTHB GST/HST pages and Guide RC4028 are the federal sources (used 20 Sep 2026). Ontario’s 2026 HST backgrounder is the provincial source. Your lawyer and the builder’s statement beat our labelled sketch.

Federal FTHB GST/HST rebate overview (verify thresholds at draft)

The first-time home buyers’ GST/HST rebate tops up the old federal rebate so eligible first-time buyers can recover 100% of the GST (or the 5% federal part of HST) on a qualifying new or substantially renovated home valued at or under $1 million, to a maximum of $50,000. Between $1 million and $1.5 million the rebate phases out. At $1.5 million and above, there is no FTHB GST rebate. High-level eligibility CRA lists: you are a first-time buyer on their test (including a four-year lookback), 18+, citizen or permanent resident, the home is your primary residence, and the purchase agreement is dated on or after 20 March 2025 and before 2031 (construction substantially complete before 2036). Owner-built homes use a construction-start window on the same dates. Verify the live “who can apply” page — this is not a filing position.

How it interacts with the existing new housing rebate

The regular GST/HST new housing rebate is still 36% of the GST or federal HST, max $6,300. It is fully available at or under $350,000, phases out to $450,000, and is zero at $450,000+. It is not limited to first-time buyers. CRA is explicit that the FTHB rebate is a top-up: where both apply, you are not meant to double-dip the same federal dollar. On a $750,000 new condo the regular federal rebate is $0 because of the $450,000 wall. The FTHB rebate is the one that can still move cash to close — if you are first-time and the agreement date qualifies.

Ontario’s enhanced provincial relief notes for 2026 (high-level)

Ontario’s 8% provincial HST has its own stack, and it moved in 2025–2026:

• The long-standing Ontario new housing rebate still exists (provincial-portion maximum often cited at $24,000 when HST was paid on the land — confirm RC4028).
• Ontario first-time home buyers’ rebate: CRA’s FTHB page (noted 16 Jun 2026) describes up to $80,000 of the 8% provincial part for eligible first-time buyers, following federal FTHB conditions.
• Ontario Enhanced New Housing Rebate (ENHR): agreements 1 April 2026 through 31 March 2027 (owner-built: construction start in that window). Up to $80,000 of the 8% on eligible homes valued up to $1 million; the maximum holds to $1.5 million then declines toward $24,000 at $1.85 million (budget.ontario.ca 2026 HST backgrounder; CRA Notice 346).
• If you qualify for both Ontario FTHB and ENHR, CRA/Ontario say you may claim either or both, but total Ontario rebates of the 8% cannot exceed the lesser of $80,000 and the 8% actually payable.

ONHAP (Ontario new home affordability payment) is a provincial top-up administered with the ENHR — confirm ServiceOntario / CRA sharing consent on the forms. This paragraph will age. Re-open budget.ontario.ca/2026/hst.html before you bid.

New build vs resale: who this helps

GST/HST applies to newly constructed or substantially renovated housing, not to a typical resale of a used home. Assignment fees and some builder extras can have their own tax treatment — ask the lawyer. A $720,000 resale with $10,475 of net Toronto LTT (see LTT refunds) can still beat a $700,000 “net HST” new studio once you add condo fees, occupancy interest, and a levy. Run both stacks. Do not let a sales centre hide land transfer tax behind an HST slogan.

Application timing and builder credit vs rebate filing

Builders can credit eligible rebates against the price the way they long credited the regular new-housing rebate — once the law lets them. CRA notes that before Royal Assent (12 March 2026) builders generally could not credit the new FTHB rebate; buyers in that window may need to file themselves. You usually have two years from ownership (or possession, depending on application type) to claim. Forms live in the GST190 / GST191 / Ontario schedule world (RC7190-ON for Ontario extras). Co-ops often cannot credit you — you file. If a rebate was credited and you were not eligible, you can owe it back. Read the statement of adjustments twice.

Worked cash-to-close example

If the builder already “netted HST,” ask which rebates are in that net and whether you must still file. Then add occupancy fees, development charges passed through, and the first-year reserve on year-one costs.

When a resale still wins despite missing the rebate

A resale wins when the all-in monthly (fees, tax, heat) is lower, when the new-build occupancy date is 2028, when you fail the first-time test (a 2019 co-sign counts), when the agreement is dated before 20 Mar 2025, or when the new-build levy and parking stall erase the tax save. Run the city rent-vs-buy worksheet with net tax, not list price. FTHBI is still closed — do not plug shared equity into the gap (replacement stack).