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First-Time Buyer Guide · British Columbia
GST
GST
Rebate
Save up to $50,000 on
your first new home in BC.
The federal government's First-Time Home Buyers' GST/HST Rebate is now in effect. Qualifying first-time buyers can recover up to $50,000 in GST on newly built or substantially renovated homes priced at or below $1 million — a massive upgrade from the previous program, which capped out at just $6,300.
Updated April 2026 · 6 Min ReadStatus: Now Law
The FTHB GST/HST Rebate received Royal Assent on March 12, 2026 and the CRA is now accepting applications. The rebate applies retroactively to eligible purchase agreements entered into on or after March 20, 2025. For full details and to apply, visit the CRA's FTHB GST/HST Rebate page.
How the Rebate Works
The standard GST rate in Canada is 5%. On a $1 million new home, that's $50,000 in tax. Under the new FTHB GST/HST Rebate, first-time buyers purchasing a newly built or substantially renovated home at or below $1 million receive a full rebate of the GST — effectively reducing the GST to zero.
For new homes priced between $1 million and $1.5 million, a partial rebate is available. The rebate phases out on a straight-line basis: a home at $1.25 million, for example, would qualify for a 50% rebate (up to $25,000 back). No rebate is available for homes at or above $1.5 million.
This new rebate works alongside the existing GST/HST New Housing Rebate. Together, they deliver the full 100% GST recovery on homes up to $1 million for qualifying first-time buyers.
Savings at a Glance
| New Home Price | GST (5%) | Rebate Amount | Net GST Payable |
|---|---|---|---|
| $500,000 | $25,000 | $25,000 | $0 |
| $750,000 | $37,500 | $37,500 | $0 |
| $1,000,000 | $50,000 | $50,000 | $0 |
| $1,250,000 | $62,500 | ~$25,000 | ~$37,500 |
| $1,500,000+ | $75,000+ | $0 | Full GST |
Who Is Eligible
The rebate is specifically targeted at first-time buyers. To qualify, you must meet all of the following criteria:
- Age: Be at least 18 years old.
- Residency: Be a Canadian citizen or permanent resident.
- First-Time Buyer: Neither you nor your spouse/common-law partner can have owned or lived in a home you owned in the calendar year of purchase or in the four preceding calendar years.
- Primary Residence: The home must be purchased for use as your primary place of residence, and you must be the first person to occupy it.
Eligible Property Types
- A new or substantially renovated home purchased from a builder (including on leased land).
- A home you build, or hire someone to build, on land you own or lease.
- A share in a co-operative housing corporation corresponding to a new unit.
Resale Homes
The GST rebate applies only to new construction or substantial renovations. Resale homes in BC are not subject to GST and do not qualify for this rebate. If you're purchasing a resale property, you may still benefit from BC's Property Transfer Tax exemptions.
Key Dates & Deadlines
March 20, 2025
Effective date. Purchase agreements entered into on or after this date are eligible for the rebate.
March 12, 2026
Royal Assent. The legislation is now law and the CRA is accepting rebate applications.
Before January 1, 2031
Construction of the home must begin before this date. Purchase agreements must also be signed before this deadline.
Before January 1, 2036
The home must be substantially completed before this date.
Important Limitations
- One-time benefit: You can only claim the rebate once in your lifetime.
- Spousal restriction: If your spouse or common-law partner has already claimed the rebate, you are not eligible — even on a different property.
- Assignment sales: If you're purchasing through an assignment, the original purchase agreement must have been entered into on or after March 20, 2025.
- Two-year deadline: You generally have up to two years from the date ownership or possession is transferred to file your rebate application.
How to Claim the Rebate
In most cases, the builder credits the rebate directly to you at closing. This is handled through your lawyer or notary as part of the final statement of adjustments. The builder submits the jointly completed Form GST190 to the CRA on your behalf.
If the builder does not credit the rebate at closing, you can apply directly to the CRA using your CRA account or by mailing in Form GST190. Confirm the arrangement with both your builder and legal team well before completion.
For owner-built homes, you apply directly to the CRA using your CRA account or by mailing Form GST191 after the home is substantially completed.
Other First-Time Buyer Programs in BC
The GST rebate is one piece of the puzzle. If you're a first-time buyer in British Columbia, several additional programs can reduce your costs:
BC Property Transfer Tax Exemption
First-time buyers in BC may be fully exempt from the property transfer tax on homes up to $835,000, with partial exemptions to $860,000. You must be a Canadian citizen or permanent resident, have lived in BC for 12 consecutive months (or filed two BC tax returns in the last six years), and never have owned a principal residence anywhere in the world. This is a provincial program — you can qualify for both this and the federal GST rebate. Learn more on the BC government website →
RRSP Home Buyers' Plan
The Home Buyers' Plan allows you to withdraw up to $60,000 tax-free from your RRSPs to fund your down payment. The funds must have been in your RRSP for at least 90 days before withdrawal. You then repay the amount over 15 years, starting five years after the purchase (for withdrawals made between 2022 and 2025). Learn more on the CRA website →
First-Time Home Buyer's Tax Credit
This federal non-refundable tax credit of $10,000 provides up to $1,500 in tax relief. It's designed to help offset closing costs such as legal fees, inspections, and land transfer taxes. Learn more on the CRA website →
Frequently Asked Questions
How much GST can first-time home buyers save in BC?
Up to $50,000 on new homes priced at or below $1 million. A partial rebate is available between $1 million and $1.5 million. No rebate applies at $1.5 million or above.
Does the GST rebate apply to resale homes?
No. Resale homes are not subject to GST in Canada. This rebate only applies to newly constructed or substantially renovated homes, including new builds from a builder, owner-built homes, and co-op housing shares.
Can I use the GST rebate and the BC Property Transfer Tax exemption together?
Yes. The federal GST rebate and BC's PTT exemption are entirely separate programs administered by different levels of government. If you qualify for both, you can benefit from each.
What if my partner already claimed the rebate?
If your spouse or common-law partner has previously claimed the FTHB GST/HST Rebate, you are not eligible — even if you personally have never owned a home.
I'm buying a pre-sale — does the signing date matter?
Yes. The purchase agreement must be entered into on or after March 20, 2025, to qualify. For assignment sales, the original agreement must also have been signed on or after that date.
How do I apply for the rebate?
If your builder credits the rebate at closing, the builder submits Form GST190 to the CRA on your behalf. If the builder does not credit the rebate, you can apply directly through your CRA account or by mailing Form GST190. For owner-built homes, use Form GST191. You generally have up to two years from the date of ownership or possession to apply.
Sources: CRA — First-Time Home Buyers' GST/HST Rebate · Department of Finance Canada — GST Relief Backgrounder
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