The Proposed First-Time Home Buyers’ GST Rebate: What It Could Mean for 2026 Buyers

If buying your first home is on your 2026 vision board, there’s a federal update worth keeping on your radar—a proposed First-Time Home Buyers’ (FTHB) GST/HST rebate that could significantly reduce the upfront tax on a newly built home.

In December 2025, Bill C-4—which includes the proposed GST rebate for first-time home buyers—passed the House of Commons. The bill still needs Senate approval before it can become official, and the Senate adjourned for winter recess until February 3, 2026. In other words: the relief didn’t arrive in 2025, but there’s real momentum heading into 2026.

What the proposed rebate could mean for first-time buyers

While the bill still has steps to go, the intent is clear: the proposed rebate would eliminate or reduce the GST (or federal portion of HST) for eligible first-time home buyers purchasing a new home.

The CRA’s current details say:

• On a new home up to $1 million, it could cover up to 100% of GST (up to $50,000).
• Between $1 million and $1.5 million, the rebate would phase out.
• At $1.5 million and above, there would be no rebate.

What “phasing out” means between $1M and $1.5M

“Phasing out” simply means the rebate gradually decreases as the home price rises above $1,000,000—rather than dropping to zero all at once. The closer the purchase price is to $1.0M, the closer you are to the full rebate. The closer it gets to $1.5M, the rebate moves closer to $0. A helpful way to picture it: around the midpoint ($1.25M), the rebate would be roughly half of the maximum.

For many first-time buyers, these kind of savings could help with the practical (and exciting) stuff—like window coverings, furniture, landscaping, or simply keeping more room in your budget as you settle in.

Planning Your Homebuying Journey in 2026

You don’t need to memorize legislation to be smart about your next move. A few simple, practical steps can keep you ready—without putting your plans on pause:

• Plan your budget with flexibility. Until this becomes official and the application process is live, it’s best to treat any rebate as potential savings—not guaranteed cash-in-hand (the CRA currently lists the rebate as “Not yet available” and says applications aren’t available yet).
• Keep your paperwork organized. Your purchase agreement and key dates matter for programs like this once details are finalized.
• Talk to your builder early. If you’re shopping for a new build or quick possession, it’s worth asking how proposed changes like this may be handled once they’re official.

Reach Out to Trico For More Information

If you’re thinking about buying your first home in 2026, Trico’s team can help you explore communities, home types, and timelines that fit your life—so you’re ready to move when the timing (and the policies) line up.

Book a meeting with a Trico team member to talk through your goals, your timeline, and what you’re looking for in a first home. Inquire today—we’d love to help you take the next step with confidence.

Please note: this is general information, not tax or legal advice—and because the rebate is still tied to proposed legislation, details could change. Click here for more information.