Unlocking Up to $63K in Savings: The New FTHB Housing Rebate & HST New Home Rebate Explained!

In this episode of Building Wealth Through Real Estate, Brick by Brick, I break down the major difference between 2 of Canada’s key homebuyer incentives: the longstanding HST New Housing Rebate and the brand new GST rebate designed specifically for First-Time Home Buyers (FTHBs).

Ciao! Welcome to a new episode of Building Wealth Through Real Estate...Brick by Brick with me, Nico James-Bock, Founder of The CondoWiz™ Group and Broker at Keller Williams Co-Elevation Realty in Toronto.  

You’ll learn:

• How each rebate works, and who qualifies
• Why first-time buyers can now save up to $63,000 by stacking both rebates
• What these changes mean for developers, agents, and investors
• How to guide your clients (or yourself) to take full advantage of both opportunities

This is essential listening for anyone involved in buying or selling new construction homes in Canada — especially in high-demand markets like the GTHA.

🎧 Tune in and get ahead of the curve!

Ciao ciao

Transcript

Unlocking Up to $63K

There are two rebate programs offered by the federal government for first-time buyers and regular buyers, and they apply to new builds. These rebates can amount to up to $63,000 for eligible buyers. In this new episode of Brick by Brick, we’re helping you build wealth through real estate.

I'm going to unpack the rebates to give you a clear understanding of what they offer and how they can apply in your specific situation. My name is Nico James-Bock. I’m a broker and CondoWiz™ at the CondoWiz™ Group at Keller Williams Co-Elevation Realty in Toronto. Welcome to this new episode.

Let’s take a look at these rebates and unpack what’s going on with them.

Why should you care about these rebates? Because they reduce the upfront costs of buying a brand-new home. They offer up to $63,000 in tax relief when combined, and they aim to help all buyers break into the new home market.

Let’s start with a quick definition. GST is the Goods and Services Tax — a 5% federal tax on new homes. HST is the Harmonized Sales Tax — a combined 13% in Ontario made up of 5% GST and 8% PST.

FTHB stands for First-Time Home Buyer — someone who has not owned a home in the current calendar year or in the four preceding calendar years.

Let’s look at the first one: the HST New Housing Rebate. This rebate covers part of Ontario’s 13% HST and is available to anyone buying a new or substantially renovated home. The home must be used as a primary residence. That means this rebate does not apply to an investment property you plan to rent out.

The maximum rebate is $24,000 for the provincial portion and $6,300 for the federal GST portion for homes under $350,000. The federal portion is phased out as the home price increases beyond $450,000.

The second program is the new FTHB GST Rebate. Introduced in the 2025 federal budget, this rebate is available only to first-time homebuyers. It eliminates the full 5% GST on homes up to $1 million and provides a partial GST rebate for homes priced between $1 million and $1.5 million. Homes priced above $1.5 million do not qualify. The property must be a new build or a substantially renovated home, and it must be used as the buyer’s principal residence.

Let’s take a closer look at who qualifies.
 For the HST rebate, any buyer of a qualifying new or substantially renovated home must occupy the home or have an immediate family member do so.

For the FTHB GST rebate, the buyer must be a first-time homebuyer, meaning they haven’t owned a home in the current calendar year or the four years prior. The home must be a new build and used as a primary residence.

Can a qualified person stack the rebates? Yes! First-time homebuyers can qualify for both rebates.

For example, on a $950,000 new home purchase:
 • The FTHB GST Rebate would be $47,500 — fully eliminating the 5% GST.
 • The HST New Housing Rebate would be $24,000 — the maximum standard rebate.
 That brings the total potential savings to $63,000, bringing the effective home price down to $878,500 for a qualified buyer.

Why does this matter? Because it’s a major affordability win for buyers — especially first-time buyers — and even more so in a buyer’s market. It encourages new home purchases under the $1 million or $1.5 million thresholds. It boosts demand for entry-level new construction. Realtors and builders can use this to guide buyer strategy and pricing, helping clients take advantage of all available incentives.

As of summer 2025, we’re in a predominantly buyer’s market in many sectors and neighbourhoods. Using even one of these two rebates can result in substantial savings for qualified buyers — and those savings can be combined with additional incentives from builders or discounts in the resale market due to high inventory, particularly in the condo sector.

Some sellers — especially builders — are already offering rebates or discounts. When you stack those incentives with these federal and provincial rebates, the cost of buying a home drops significantly for first-time and eligible buyers.

Let’s now compare these two rebates side by side:

• Eligibility:

• HST New Housing Rebate: available to most homebuyers.
• FTHB GST Rebate: for first-time buyers only.

• Home Type: New build or substantial renovation (applies to both).
• Residence Requirement: Must be a primary residence (applies to both).
• Maximum Home Price:

• HST Rebate phases out federally after $450,000.
• FTHB GST Rebate applies fully up to $1 million, partially up to $1.5 million.
   • Maximum Rebate Amount:
• HST Rebate: Up to $30,000 combined (federal + provincial).
• FTHB Rebate: Up to $50,000 (federal).
   • Claim Timing:
• HST Rebate: At closing or post-closing via CRA.
• FTHB GST Rebate: Claimed at purchase or refunded afterward.
   • Tax Type Covered:
• HST Rebate: Covers provincial (8%) and some federal GST.
• FTHB GST Rebate: Covers federal GST only.

To wrap up — the FTHB GST rebate is a game-changer for affordability, especially right now. When stacked with the HST New Housing Rebate, first-time homebuyers can realize substantial savings. Purchase price and timing are critical, and it's important to work with a professional realtor, lawyer, and accountant to maximize your rebate eligibility.

If you found this information useful — for yourself or someone you care about — like or share this video or post. These rebates can be a huge benefit for first-time buyers or anyone looking to make a move, as long as they plan to use the property as their primary residence.

That wraps up another episode of Helping You Build Wealth Through Real Estate, Brick by Brick. My name is Nico James-Bock. All my contact information is in the show notes and on my social profiles. You can find me on Instagram, Facebook (personal and business), and LinkedIn.

Ciao :-)