Short answer
For eligible first-time buyers, federal GST/HST relief can reduce tax on a new home up to the $1M full-relief threshold and phases out before $1.5M. The cash-to-close question is whether the builder credits that amount at closing or the buyer claims it after closing.
Eligibility worksheet
First-time buyer rebate checkpoints
These are the buyer-level questions that decide whether the federal rebate belongs in the closing-cash estimate.
What this page helps you decide
Buyer wants to estimate the new federal first-time buyer GST/HST rebate and understand whether it lowers closing cash.
- Full federal relief is modelled up to the $1M threshold and phased out before $1.5M.
- The calculator flags spouse/common-law ownership and primary residence assumptions.
- Cash-to-close scenarios show the difference between builder-credit and claim-later timing.
Documents to check
Where to find the answer
The goal is to replace rough assumptions with document-backed numbers before closing.
Agreement of purchase and sale
Confirms the agreement date, purchaser names, property, and builder sale terms.
Rebate assignment or credit clause
Shows whether the builder expects to credit the rebate or leave the buyer to claim later.
Occupancy plan
The rebate is tied to primary residence use and first occupancy rules.
Buyer status notes
Spouse or common-law ownership history can change the first-time buyer answer.
What the federal rebate is trying to do
The federal first-time buyer GST/HST rebate is meant to reduce the federal tax burden on qualifying new homes. In plain language, it can lower the tax cost, but it does not automatically tell you how much money to wire on closing day.
Why cash timing matters
CRA guidance allows a builder to pay or credit eligible new housing rebates to the buyer in some cases. If that credit appears at closing, the buyer's wire can be lower. If the buyer claims after closing, the rebate may help later but not with the immediate funds request.
Why this page is not the whole answer
The federal rebate is only one line in a closing ledger. Land transfer tax, Toronto MLTT, CMHC PST, legal/title costs, Tarion or warranty allowances, development charges, deposits, and builder adjustments still need to be combined.
Common mistakes
What buyers often miss
Assuming first-time status is obvious
The simple question is whether the buyer has owned before. The harder question is whether a spouse or common-law partner's ownership history changes the result.
Treating a rebate estimate as closing cash
A rebate amount is not the same as cash available at closing unless the builder or closing documents actually apply it before the buyer wires funds.
Ignoring the agreement date
Date windows are not cosmetic. The signed agreement date can decide which rebate path is even available.
Example federal relief estimate
| Purchase price | $950,000 |
|---|---|
| Estimated federal GST relief | $47,500 Before builder-treatment timing |
| Cash-flow issue | Credit now or claim later |
Source-linked claims
What this page relies on
CRA guide RC4028 describes the first-time buyer rebate as available up to $50,000 of the GST or federal part of the HST for qualifying new homes valued up to $1.5 million.
CRA guidance says qualifying builder-purchase agreements must generally be entered into on or after March 20, 2025 and before 2031, with substantial completion before 2036.
CRA guidance also explains that a builder may pay or credit eligible rebates to a buyer, which is why rebate timing belongs in a cash-to-close calculator.
Frequently asked
Is the first-time buyer GST/HST rebate the same as the land transfer tax rebate?
No. They are separate programs with different rules, amounts, and claim mechanics. This site models them separately in the closing ledger.
Does the rebate always reduce cash needed at closing?
Not always. If the builder credits or assigns the rebate at closing, it can reduce closing cash. If the buyer claims later, cash needed at closing may be higher.