Canada's $50,000 GST Exemption for First-Time Buyers (2026)

For years, the federal GST New Home Rebate helped first-time buyers — but only barely. The rebate maxed out at $6,300 and disappeared entirely for homes priced above $450,000. In a market like Metro Vancouver or the Fraser Valley, where most new builds cost $600,000 to $1,000,000+, the rebate was essentially irrelevant to the majority of buyers.

Bill C-4 changes everything. Instead of a small, means-tested rebate, it introduces a full GST exemption for first-time buyers on newly built homes — eliminating the GST entirely on homes up to $1,000,000, with a reduced rate for homes between $1,000,000 and $1,500,000. Maximum saving: $50,000.

The exemption eliminates 5% GST on the full purchase price of the home, up to a maximum saving of $50,000 (capped at a $1,000,000 purchase price). Here's what that looks like at common new build price points in BC:

If your new home is priced between $1,000,000 and $1,500,000, you still get a rebate — but it phases out linearly. The formula is:

Rebate = $50,000 × ($1,500,000 − Purchase Price) ÷ $500,000

At the midpoint ($1,250,000), the rebate is exactly $25,000. Here's the full sliding scale:

The CRA has published the eligibility criteria for the first-time buyer GST exemption. You must meet all of the following:

• At least 18 years old at the time of purchase.
• Canadian citizen or permanent resident.
• First-time buyer — you must not have owned a home that was your primary residence in the current calendar year or the preceding four calendar years.
• Primary residence — the home must be purchased for use as your primary place of residence, not as a rental or investment property.
• First to occupy — you must be the first person to occupy the home after construction or substantial renovation is complete.
• New construction or substantially renovated — the property must be a newly built home, presale condo, or substantially renovated property being sold for the first time.
• Purchase agreement dated March 20, 2025 or later — and entered before January 1, 2031.

The exemption covers a wide range of housing types — not just detached homes. All of the following qualify, as long as the property is newly constructed or substantially renovated:

• Detached house
• Semi-detached house
• Duplex
• Townhouse / row house
• Condominium unit
• Co-operative housing (share purchase)
• Mobile home
• Floating home
• Substantially renovated home (sold for the first time after renovation)

The CRA is now accepting applications. How you apply depends on whether you purchased from a builder or built/renovated the home yourself.

Path 1: Purchased From a Builder

Most common for new condos, townhouses, and detached homes in BC.

• 1. Notify your builder — Tell the builder you're a first-time buyer when signing the purchase agreement. They will need to confirm your eligibility before closing.
• 2. Sign a declaration — You'll sign a statutory declaration confirming you are a first-time buyer and that the property will be your primary residence.
• 3. Builder assigns the rebate at closing — The builder credits the GST savings at closing, so you never pay it. The builder then files the rebate claim with the CRA on your behalf.
• 4. If builder already charged GST — If a builder charged GST before the exemption was confirmed, you can apply directly to the CRA for a refund. This is especially relevant for buyers who closed between March 20, 2025 and March 12, 2026 (before Royal Assent).

Path 2: Owner-Built or Substantially Renovated

If you built the home yourself or hired a contractor.

• 1. Pay GST during construction — You'll pay GST on materials and contractor services as construction progresses.
• 2. Complete construction and move in — The home must be substantially complete and you must occupy it as your primary residence.
• 3. File a rebate claim with the CRA — Apply directly using CRA Guide RC4028. The CRA will process your claim and issue a refund for the GST paid.

BC uses the federal GST (5%) — not the harmonized HST used in provinces like Ontario (13%). This means the maximum saving for BC buyers is $50,000 (5% of $1,000,000).

Even at $50,000, this is a transformative saving for BC buyers. On a $900,000 new build — a common price point in Surrey, Langley, and Abbotsford — the GST exemption saves you $45,000 at closing. Combined with BC's Property Transfer Tax exemption for newly built homes (up to $16,000), the total saving is over $60,000.

The GST exemption doesn't replace other first-time buyer programs — it stacks on top of them. For a first-time buyer purchasing a $900,000 new build in BC, here's the combined picture:

That's a potential $62,500 in direct cash savings at closing (GST + PTT + HBTC) — plus access to $100,000 in tax-advantaged savings toward your down payment through the FHSA and RRSP HBP.

For a full breakdown of all first-time buyer incentives available today, see my guide on First-Time Home Buyer Incentives in BC.

I help first-time buyers in Surrey, BC navigate these incentives every day. Whether you're wondering if you qualify, how the exemption affects your closing costs, or how to stack it with other programs — I'm happy to help. No obligation.