What is a First-Time Home Buyer? Do You Qualify for Ontario’s New 8% GST Rebate?

What Is the New GST Rebate for First-Time Home Buyers?

Under the updated program, qualified First-Time Home Buyers purchasing or building a newly constructed home can receive a rebate for both the federal (5%) and provincial (8%) portions of the GST/HST — depending on the value and purpose of the home.

Ontario’s move to remove the 8% provincial portion is designed to ease affordability challenges and encourage homeownership in a tough housing market.
 

Who Qualifies as a First-Time Home Buyer?

To be considered a First-Time Home Buyer (FTHB) under this program, you must meet the following criteria:

? Be at least 18 years old
? Be a Canadian citizen or permanent resident
? Have not lived in a home that you (or your spouse/common-law partner) owned in the past five calendar years, whether inside or outside Canada

If you meet all three requirements, you’re officially considered a First-Time Home Buyer and may be eligible for the rebate!
 

What Types of Homes Qualify for the Rebate?

The FTHB GST rebate applies to various housing scenarios, including:

• ?? Newly built homes from a builder — at least one purchaser must be a first-time buyer.

• ?? Homes built by the buyer (or a hired builder) on land they own or lease.

  • Eligible for up to $50,000 on the federal part and 8% provincial rebate on GST.

• ?? Co-operative housing units, if you purchase shares in a co-op housing corporation.
  (Note: Not available if the co-op qualifies for a 100% rebate as purpose-built rental housing.)
  
  Key Timelines to Remember

  To qualify for Ontario’s 8% rebate:

• The purchase contract must be signed before 2031, and

• Construction must be completed by 2036.

• This gives buyers and builders ample time to plan and take advantage of the new incentive.

  Why This Matters

  For many first-time buyers, this rebate could be the difference between renting and owning. With housing affordability at record lows, Ontario’s move provides a significant boost to those entering the market for the first time.