Short answer
Applications are open. An eligible first-time buyer of a new or substantially renovated home can recover up to 100% of the federal GST or federal part of HST, to a maximum of $50,000, on a home valued at $1 million or less. The rebate phases down between $1 million and $1.5 million and is nil at $1.5 million or more.
The concern behind the question
The buyer sees “up to $50,000” and subtracts that amount from the builder price. The live answer depends on the agreement date, price, occupancy, first-time-buyer test, construction timeline, whether the builder credits it and whether every form is completed correctly.
What the current rule says
- The program applies to eligible newly built or substantially renovated homes intended as the buyer’s primary place of residence.
- At $1 million or less, the federal rebate can be up to $50,000.
- Between $1 million and $1.5 million, the maximum rebate is gradually reduced; CRA’s $1.25 million example produces a $25,000 maximum.
- At $1.5 million or more, the federal first-time-buyer rebate is not available.
- For a builder purchase, the agreement generally must be entered into on or after March 20, 2025 and before 2031, with the other construction, transfer and occupancy deadlines met.
A practical Ontario example
Illustration only: A first-time buyer signs for a $1.25 million new home. The headline maximum is not $50,000 at that price; CRA’s phase-down example gives $25,000 when all conditions are met. Rajiv keeps the mortgage approval independent of the rebate unless the contract and closing treatment are confirmed.
Where buyers get caught
- Applying the rebate to a normal resale home.
- Assuming every renovation is a qualifying substantial renovation.
- Ignoring the agreement and completion dates.
- Assuming the builder will credit the rebate at closing.
Where the lender decision is separate
This program does not approve the mortgage. An A lender still applies its own income, credit, debt-ratio, down-payment and property rules. When the down payment is below 20%, the lender normally submits the file to a mortgage insurer, and the insurer must also accept it. An alternative or B lender may take a broader view of income or credit, but usually requires more equity and may charge a higher rate and fees. MIC and private financing is normally a short-term, equity-based route with a clearly costed exit—not a first-time-buyer benefit.
Rajiv would compare the available route, total cash needed, monthly payment, conditions and exit plan. Government eligibility and lender approval answer different questions.
Do not let good money create a documentation problem
Keep the full trail for the deposit, down payment and closing money. If there is a large deposit, transfer or gift in the account during the lender’s review period, keep the statements and documents showing where it came from. Do not move the same money through several accounts unless there is a reason and a complete trail. A tax program may allow a withdrawal, but the lender and lawyer still need acceptable proof of funds.
Facts, assumptions and professional roles
The linked government source describes the public program. It does not state an individual lender’s underwriting policy. A lawyer should confirm the purchase contract, title and land-transfer-tax treatment. An accountant or qualified tax professional should confirm personal tax consequences. Rajiv’s role is to connect the verified mortgage file, closing cash and property to lenders whose current policies may fit.
Source checked 2026-09-07: Read the official government source.
What Rajiv would review before you rely on this
- Which definition of “first-time buyer” applies to the exact program?
- Is the home new, resale, substantially renovated or owner-built?
- Will it be your principal residence, and when will you occupy it?
- Is the benefit credited at closing, claimed later, or dependent on another form?
- Does your mortgage file still qualify without counting an expected refund?
Related AskRajiv pathways
Continue through the First-Time Buyer Rules Hub, the Mortgage Knowledge Centre, or the Real Estate Centre. If an offer is already accepted, use the closing-problem pathway before removing a condition or missing a deadline.
Get the first-home strategy checked
A rule can save money and still leave a financing gap if the timing, documents or property do not fit. Book a First-Home Mortgage Strategy Session with Rajiv Verma, Mortgage Broker. Bring the purchase timeline, income documents, available cash, registered-plan statements and any builder paperwork. Rajiv can identify what is confirmed, what is assumed and what must be checked before you commit.