In this Memo:

• Status of the FTHB GST/HST Rebate
• CHBA Action
• What Members Can Do
• Resource for members to encourage eligible FTHBs to buy now rather than wait

Earlier this week, after extensive follow-up with the Department of Finance and the Canada Revenue Agency (CRA), CRA released more details about the implementation of the federal government's proposed GST/HST rebate for first-time home buyers (“FTHB GST/HST Rebate”), which will remove the GST (or the federal part of the HST) on new homes at or under $1 million and lower it on homes between $1 million and $1.5 million for all first-time home buyers. 

Status of the FTHB GST/HST Rebate

On June 5, proposed legislation was introduced in the House of Commons to amend the Excise Tax Act to include the FTHB GST Rebate, with the intention to complete the legislative process by July 1. The last step of that process is for the legislation to receive Royal Assent, which was not completed in time for the government’s summer recess at the end of June. 

This means that, although the legislation has been promised to come, home buyers and builders cannot apply yet for the rebate and the CRA will not process claims for the new FTHB GST Rebate until the proposed legislation has received Royal Assent. As such, builders cannot currently provide buyers with a credit beyond what the buyer would already be entitled to under the existing GST/HST New Housing Rebate. CHBA is advocating for rapid action on securing Royal Assent as quickly as possible once the House of Commons resumes as of September 15th, after the summer recess, but no firm timeline is possible at this time. 

Buyers are still eligible for the new FTHB GST Rebate for any home purchased after May 27, 2025, but if ownership is transferred to an individual before the proposed legislation receives Royal Assent, the individual would need to apply separately to the CRA for the FTHB GST/HST rebate if Royal Assent is received. If the proposed legislation receives Royal Assent and ownership is subsequently transferred to an individual, builders would be able to credit the FTHB GST/HST rebate to the purchaser in the same manner as the existing GST/HST new housing rebate. This means builders would credit the rebate amount to the purchaser, against the total amount payable for the house. The purchaser would not have to apply to the CRA directly or wait to receive their rebate. 

There is no indication that this legislation won’t be passed; rather the speed at which it will be passed is still a major concern and point of emphasis to government by CHBA. 

CHBA action

The slow implementation of this measure has hindered would-be sales and thus the creation of much-needed housing supply during a time of great market uncertainty. CHBA has been very actively conveying this problem to the Prime Minister, Ministers and government officials. After years of advocating for changes to the GST, we share members’ extreme frustrations about the delay in moving this measure forward. CHBA continues to emphasize to the federal government the problems the slow implementation of this measure has caused, stressing that, without action, buyers will continue to wait on the sidelines. And, of course, CHBA continues to advocate for expansion of the eligibility. 

Earlier this week, CHBA met with the Minister for Housing, Infrastructure and Communities, Gregor Robertson, to outline members' top priorities and concerns, including the importance of quick implementation of the FTHB GST Rebate and related resources. 

In addition to many other touchpoints, CHBA has engaged with the offices of the Prime Minister and the Minister of Finance, stressing that it is imperative that this legislation move forward as soon as the House resumes on September 15. For the tenor of those discussions, members can see the formal letter, which is available to view on CHBA’s website. 

In these discussions, CHBA also continues to advocate for a broadening of the GST relief to be adjusted to be: 

• for all homebuyers, not just first-time buyers; 

• in more expensive markets, increased thresholds to $1.5 and $2.0M; and 

• applicable to Accessory Dwelling Units (ADUs) and secondary suites, which are important forms of new housing. 

Rest assured, CHBA will keep members updated on any new developments. CRA’s information on the rebate, including FTHB qualification requirements, can be found here. 

What members can do

In order to get would-be buyers off the sidelines, it is imperative that this legislation receives Royal Assent as soon as the House returns in September. To help ensure the FTHB GST Rebate is at the top of the federal agenda on September 15, CHBA encourages members email their federal MPs directly, with examples of how this delay is impacting your business, to emphasize how critical it is that this measure be implemented as soon as possible. This, in tandem with CHBA’s ongoing advocacy efforts, will help strengthen our collective voice on this issue. 

CHBA members are also encouraged to fill out a 2-minute member survey, which will give CHBA concrete data about the impact of the slow implementation of the FTHB GST Rebate to reinforce our advocacy efforts.