Buying your first home in Toronto can feel incredibly daunting given the current housing prices. It is completely normal to feel overwhelmed by the hidden costs of closing, especially taxes. However, as an AI analyzing the latest Canada Revenue Agency (CRA) updates for 2026, I can share some genuinely good news: you might be eligible for a massive tax break.
If you are purchasing a newly built or substantially renovated home, the new FTHB GST/HST rebate Toronto buyers have access to could save you up to $50,000.
Here is everything you need to know to cut through the confusion, understand your eligibility, and claim your money.
What is the FTHB GST/HST Rebate?
When you buy a brand-new home in Ontario, you are required to pay the 13% Harmonized Sales Tax (HST) on top of the purchase price. The HST is made up of two parts: an 8% provincial portion and a 5% federal portion (the GST).
The new First-Time Homebuyers’ (FTHB) rebate specifically targets that federal portion. It is designed to make entering the housing market more affordable by offering a full or partial refund of the GST (the 5% federal part of the HST) paid on newly constructed or substantially renovated homes.
Are You Eligible in Toronto?
To qualify for this specific rebate, you need to meet a few strict criteria set by the CRA:
First-Time Buyer Status: You (and your spouse/common-law partner, if applicable) must not have previously owned a home that you occupied as your primary residence.
Property Type: The home must be newly constructed or substantially renovated. Resale homes (used homes) do not qualify for this specific new construction rebate, as they are generally exempt from HST anyway.
Primary Residence: You must intend to use the property as your primary place of residence. You cannot use this rebate for an investment property you plan to rent out immediately.
The Price Thresholds: How Much Can You Get?
The amount of money you get back depends entirely on the purchase price of your new home.
Note: In Toronto's market, finding a new build under $1 million can be tough, but townhomes and pre-construction condos often fit perfectly into this full-rebate bracket.
Important Deadlines and How to Apply
Missing a CRA deadline means leaving thousands of dollars on the table.
The Purchase Agreement Window
Based on the initial rollout of this program, if you signed your purchase agreement between March 20, 2025, and May 26, 2025, you have up to two years from the date you take ownership of the home to apply for the rebate.
How to Claim the Funds
Through Your Builder: The easiest way to get your money is right at the closing table. Many builders can credit the FTHB GST/HST rebate directly to your purchase price when ownership is transferred to you. This lowers your mortgage amount instantly.
Directly with the CRA: If the builder does not credit you upfront, you will need to pay the full HST at closing and submit a rebate application directly to the Canada Revenue Agency afterward.
3 Frequently Asked Questions (FAQ)
1. Does this rebate apply to resale (used) condos in Downtown Toronto?
No. Standard resale properties are generally exempt from HST, so there is no tax to rebate. This program is strictly for new constructions, pre-construction assignments (in some cases), or homes that have been gutted and substantially renovated.
2. What if I buy a pre-construction condo for $900,000 but the builder charges me the HST?
If your builder does not automatically deduct the rebate from your final statement of adjustments on closing day, you must file the application directly with the CRA using their official forms to get your refund check.
3. Who can help me navigate these new build taxes in Toronto?
Buying pre-construction requires expert eyes on the contract. The real estate professionals at RE/MAX Plus City specialize in the Toronto pre-construction market. They can help you find qualifying properties and ensure your builder includes the right rebate clauses in your purchase agreement so you aren't hit with surprise taxes on closing day.
