Yes — first-time home buyers in Canada who purchase or build a new home, or substantially renovate an existing one, may be eligible for the new First-Time Home Buyers' GST/HST Rebate worth up to $50,000. The home must be your primary residence and the purchase agreement or construction must have begun on or after March 20, 2025.
I'm Johnny Dulong, Family Real Estate Advisor with EXIT Realty Metro in Halifax, Nova Scotia. Over 24 years of working with buyers across Halifax Regional Municipality — from first-time purchasers in Eastern Passage to military families relocating to CFB Halifax — I've seen federal programs come and go. This one is worth paying close attention to. Visit SellHalifaxRealEstate.com to learn how this rebate could fit into your Halifax home-buying plan. [LINK: SellHalifaxRealEstate.com → https://www.SellHalifaxRealEstate.com | opens in new tab]
WHAT IS THE FIRST-TIME HOME BUYERS' GST/HST REBATE?
The federal government introduced this rebate on May 27, 2025, and passed it into law through Bill C-4 in December 2025. The Canada Revenue Agency (CRA) is now accepting applications. [LINK: CRA FTHB GST/HST Rebate → https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/gst-hst-rebates/first-time-home-buyers-gst-hst-rebate.html | opens in new tab]
Here's the short version of how it works:
Homes valued at $1 million or less: full rebate of the GST (or the federal portion of HST) paid — up to $50,000
Homes valued between $1 million and $1.5 million: a partial rebate that phases out gradually (for example, a $1.25 million home would receive approximately $25,000)
Homes valued at $1.5 million or more: no rebate
The rebate is available for homes purchased from a builder where the purchase agreement was signed on or after March 20, 2025, and before 2031, with construction substantially completed before 2036. For owner-built homes and substantial renovations, construction or renovation must also begin on or after March 20, 2025.
This rebate is in addition to the existing GST/HST New Housing Rebate — not a replacement for it. If you qualify for both, the FTHB rebate functions as a top-up.
WHO QUALIFIES AS A FIRST-TIME HOME BUYER?
To be eligible for this rebate, you must be a Canadian citizen or permanent resident who is at least 18 years old. You also must not have lived — in Canada or anywhere else — in a home that you or your spouse or common-law partner owned, as your primary residence, at any time in the current calendar year or the four preceding calendar years.
Note: your spouse or common-law partner cannot have previously claimed this rebate either. It's a once-per-lifetime benefit for each eligible individual.
Additionally, you must be the first person to occupy the home as a primary residence after construction or substantial renovation is complete. Corporations are not eligible — all purchasers must be individuals.
WHAT COUNTS AS A "SUBSTANTIAL RENOVATION"?
This is where it gets specific — and it matters. The CRA's definition of a substantial renovation is strict. To qualify, at least 90% of the interior of the existing home must be removed or replaced. This is essentially gutting a property and rebuilding it from the inside out.
What doesn't need to be removed: the foundation, exterior walls, interior load-bearing walls, roof, floors, and staircases. Only livable areas count toward the 90% calculation — finished basements and attics are included, but garages and crawl spaces are not.
Partially completing a basement does not count toward the 90% test unless it becomes a livable area.
For Halifax buyers considering a major renovation project, this threshold is high. A kitchen-and-bathroom update won't meet it. A full gut renovation that rebuilds the interior from scratch potentially will. Before assuming your project qualifies, speak with both a tax professional and a real estate advisor who understands how these rules apply in practice.
A NOVA SCOTIA-SPECIFIC NOTE
Nova Scotia charges HST at 15% — 5% federal GST plus 10% provincial HST. The FTHB rebate currently applies only to the federal 5% portion. As of March 2026, Nova Scotia has not announced whether it will rebate the provincial 10% portion to match.
Ontario has signalled its intention to provide a matching provincial rebate. If Nova Scotia follows suit, eligible buyers in HRM could see significantly larger total savings. Keep an eye on provincial announcements — this could change.
For the purpose of planning your purchase in Halifax, assume the federal rebate only, until the Province of Nova Scotia confirms otherwise. [LINK: Government of Nova Scotia Housing Programs → https://www.novascotia.ca/just/housing/ | opens in new tab]
HOW THIS AFFECTS FIRST-TIME BUYERS IN HALIFAX REGIONAL MUNICIPALITY
In the current Halifax market, where the benchmark home price in HRM sits around $545,200 and new-construction townhomes and detached homes regularly land between $550,000 and $750,000, this rebate is meaningful.
For context, 5% GST on a $650,000 new build equals $32,500 in federal tax. Under the FTHB rebate, a qualifying first-time buyer could recover the full $32,500. On a $1 million home, that's a full $50,000 back. These aren't small numbers for buyers managing their first purchase in Halifax Regional Municipality.
If you're exploring new construction in communities like Bedford West, Dartmouth, Sackville, or the Hammonds Plains corridor — areas where new-build inventory has been most active in HRM — this rebate could significantly change your effective purchase cost.
For buyers working with the Nova Scotia Down Payment Assistance Program (DPAP), the First Home Savings Account (FHSA), or the RRSP Home Buyers' Plan, the FTHB GST rebate can stack on top of those programs, further reducing your total upfront cost. [LINK: What first-time home buyer programs are available in Nova Scotia in 2026? → https://sellhalifaxrealestate.com/blog.html/irst-time-home-buyer-programs-in-nova-scotia-what-actually-works-in-20-8958243 | opens in new tab]
HOW TO APPLY
If you purchased your home from a builder and the builder transferred ownership after Bill C-4 received Royal Assent (December 2025), the builder can credit the rebate directly against your purchase price at closing — the same way the existing GST/HST New Housing Rebate has traditionally worked.
If ownership transferred before Royal Assent, you apply directly to the CRA after the fact — and you have two years from the date ownership was transferred to do so.
For owner-built homes or substantial renovations, you apply directly to the CRA online through your CRA My Account, or by mailing in the completed form. You have two years from the date construction or renovation was substantially completed to apply.
Keep all your receipts, building contracts, and purchase documentation. The CRA will want evidence supporting both the purchase price and the nature of the construction or renovation.
HOW DO I KNOW IF MY RENOVATION QUALIFIES?
The 90% interior replacement test is technical and fact-specific. A general contractor's assessment of the scope of work is a useful starting point, but a tax professional with experience in GST/HST housing rebates should confirm eligibility before you apply. Getting this wrong — in either direction — can mean money left on the table or an unexpected CRA reassessment.
If you're buying a newly built or substantially renovated home from a builder in Halifax Regional Municipality, your purchase agreement and closing documents should indicate whether the builder is crediting the GST/HST rebates at closing. If you're not sure, ask — before you sign. [LINK: Why Halifax First-Time Buyers Should Get Pre-Approved Before the Spring Rush → https://sellhalifaxrealestate.com/blog.html/why-halifax-first-time-buyers-should-get-pre-approved-before-the-sprin-8958071 | opens in new tab]
DISCLAIMER
This post is for informational purposes only and does not constitute legal, financial, tax, or mortgage advice. Market conditions in Halifax Regional Municipality change frequently, and federal tax programs are subject to legislative changes and CRA interpretation. Always consult a qualified tax professional, mortgage professional, lawyer, or financial advisor before making real estate or financial decisions. Johnny Dulong is a licensed REALTOR® with EXIT Realty Metro serving Halifax Regional Municipality, Nova Scotia.
Last reviewed: March 2026 — reviewed quarterly
FREQUENTLY ASKED QUESTIONS
Is the first-time home buyers' GST rebate available for renovations in Canada?
Yes, but only if the renovation meets the CRA's definition of a "substantial renovation" — meaning at least 90% of the interior of the existing home is removed or replaced, and the home will be your primary place of residence. A standard kitchen update or bathroom refresh does not qualify. This is a high bar, and you should confirm eligibility with a tax professional before applying.
Can first-time home buyers in Halifax claim the GST rebate on a newly built home in 2025 or 2026?
Yes. The FTHB GST/HST Rebate applies to purchase agreements signed on or after March 20, 2025, for homes built or substantially renovated as your primary residence. In Halifax Regional Municipality, where new construction is concentrated in communities like Bedford West, Dartmouth, and Sackville, eligible first-time buyers can recover up to $50,000 of the federal GST paid on homes valued at $1 million or less. Homes valued between $1 million and $1.5 million receive a partial rebate on a sliding scale.
Does Nova Scotia provide an additional HST rebate for first-time home buyers?
As of March 2026, Nova Scotia has not announced a provincial rebate to match the federal FTHB GST program. The current rebate covers only the federal 5% GST portion of HST — not the provincial 10%. Ontario has announced its intention to match the federal rebate, but HST provinces like Nova Scotia, New Brunswick, Newfoundland, and PEI have not yet confirmed similar programs. Check for updates from the Nova Scotia government as legislation evolves.
Call or text Johnny Dulong, Family Real Estate Advisor, EXIT Realty Metro, at 902-209-4761. You can also explore current listings and buyer resources at SellHalifaxRealEstate.com. [LINK: SellHalifaxRealEstate.com → https://www.SellHalifaxRealEstate.com | opens in new tab]
Johnny Dulong | Family Real Estate Advisor | EXIT Realty Metro 902-209-4761 | SellHalifaxRealEstate.com Call today … EXIT tomorrow!
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