Canada’s Bill C-4 has now received Royal Assent, and one of the biggest housing changes inside it is a new first-time home buyers’ GST/HST rebate on eligible new homes, including many pre-construction purchases. In simple terms, this can reduce or eliminate the federal 5% GST portion of the tax on a qualifying new home. In Ontario, that means it helps with the federal part of the 13% HST, not the provincial 8% portion.
For buyers looking at pre-construction in places like Brampton, Caledon, Mississauga, Kitchener, Cambridge, and Waterloo, this is important because tax costs can be a major part of the budget. This new rebate is meant to make buying a new home more affordable for qualifying first-time buyers.
What exactly did Bill C-4 change?
Bill C-4 created a temporary first-time home buyers’ GST/HST rebate. According to the CRA, the rebate can eliminate the GST or federal HST portion on a new home priced up to $1 million, and then gradually reduces for homes priced between $1 million and $1.5 million. Once the price reaches $1.5 million or more, this rebate is no longer available.
The CRA also explains that this new rebate can work in addition to the existing GST/HST new housing rebate. Where both apply, the new first-time buyer rebate acts as a top-up.
How much rebate can you get?
The maximum rebate is up to $50,000.
The basic structure works like this:
Home price up to $1,000,000: up to 100% of the federal GST / federal HST portion, to a max of $50,000
Home price between $1,000,000 and $1,500,000: rebate is reduced on a sliding scale
Home price at or above $1,500,000: no rebate under this program
A CRA example shows that if an eligible buyer purchases a new home for $1.25 million, that is the midpoint between $1 million and $1.5 million, so the buyer may qualify for 50% of the maximum rebate, or $25,000.
Who is eligible?
To qualify, you must meet the CRA’s definition of a first-time home buyer. Generally, that means all of the following must be true:
You are at least 18
You are a Canadian citizen or permanent resident
You have not lived in a home that you or your spouse/common-law partner owned as your primary residence in the calendar year of closing or in the previous four calendar years
Neither you nor your spouse/common-law partner has previously received this specific FTHB GST/HST rebate
That 4-year rule is important. For example, if you take ownership in 2026, you generally must not have lived in an owned principal residence in 2026, 2025, 2024, 2023, or 2022.
What homes can qualify?
This rebate is meant for new or substantially renovated homes, including homes purchased from a builder, some leased-land homes, owner-built homes, and some co-op situations. For most buyers reading this blog, the main category is a new home purchased from a builder, including many pre-construction homes.
For a new home bought from a builder, the CRA says the main conditions include:
The agreement of purchase and sale must be entered into on or after March 20, 2025, and before 2031
Construction must begin before 2031
The home must be substantially completed before 2036
Ownership must transfer to you before 2036
The home must be bought as your primary place of residence
You must be the first person to occupy it after completion
Does this apply to investors?
No, not in the usual investor sense. This rebate is designed for a buyer who is purchasing the home as their primary residence. If your plan is to buy solely as an investment or rental, you would generally be looking at different tax rules and possibly different rebate programs, not this first-time buyer rebate.
How do you actually get the rebate?
There are two common ways.
If you are buying from a builder, the builder may be able to credit the rebate at closing, reducing the amount you need to pay. If the builder does not credit it, you can apply directly to the CRA using your CRA account or by mailing Form GST190.
If you are building your own home, CRA says you can apply directly using your CRA account or by mailing Form GST191.
What documents or information will you likely need?
The CRA pages and rebate guide point buyers to the housing rebate forms and worksheets. In practice, buyers should expect to keep or provide items such as:
Agreement of purchase and sale
Statement of adjustments / closing documents
Proof of tax paid or credited
ID and residency information
Occupancy / possession details
Builder information
Rebate forms such as GST190 and the calculation worksheet RC7190-WS where applicable
Because builders may structure tax and rebate paperwork differently, it is smart to confirm early with the builder, your lawyer, and your accountant or tax professional how the rebate will be shown on the deal.
What should buyers watch out for?
The biggest mistakes are usually these:
Assuming every pre-construction deal qualifies. It must meet the timing, price, occupancy, and first-time buyer rules.
Thinking this removes all HST in Ontario. It does not. This federal rebate applies to the GST / federal HST portion, not automatically to the provincial Ontario portion. Ontario has its own rebate framework for the provincial part of HST.
Buying as an investor and expecting the same benefit. This rebate is for a home intended as your primary residence.
Missing the first-time buyer test because of spouse ownership history. CRA looks at whether you or your spouse/common-law partner owned and lived in a principal residence during the relevant years.
Best areas and project types to consider
Rather than saying one project is “best” for everyone, the smarter way is to match the project to the buyer’s goal, budget, and timeline.
1) Brampton: best for buyers who want family-oriented freehold options
Brampton continues to offer a lot of new low-rise product compared with central Toronto. Current official examples include High Point at Mississauga Rd. & Mayfield Rd. from Paradise Developments, which is marketing freehold towns and detached homes, and The Bright Side by Remington, which is promoting detached inventory homes in Brampton.
Why Brampton stands out:
Better fit for buyers who want more space
Strong appeal for families
More low-rise inventory compared with some urban markets
2) Caledon: best for move-up buyers and buyers wanting newer master-planned communities
Caledon is attractive for buyers who want a newer suburban feel and more land-oriented housing. Official examples include Crown of Caledon by Fieldgate Homes, which is marketing freehold townhomes plus 38’ and 60’ singles, with access to retail and a proposed transit hub near Highway 410.
Why Caledon stands out:
Good for buyers planning longer-term ownership
More detached and larger-home choices
Good option for buyers comfortable with a higher budget
3) Mississauga: best for buyers who want waterfront or transit-connected urban living
Mississauga is attractive for buyers who want condo or townhome living with strong lifestyle appeal. Two major official waterfront communities are Brightwater in Port Credit and Lakeview Village on the eastern waterfront. Brightwater describes itself as a 72-acre master-planned waterfront community, while the City of Mississauga says Lakeview Village is a 177-acre mixed-use redevelopment.
Examples inside these communities include Harbourwalk at Lakeview Village from Tridel, which says construction is underway, and Aura by Caivan in Lakeview Village, which advertises townhomes from the high $500s.
Why Mississauga stands out:
Strong lifestyle and waterfront appeal
Better fit for condo and townhome buyers
Attractive for commuters and professionals
4) Kitchener: best for value-conscious buyers and families wanting newer communities
Kitchener remains one of the more practical markets for buyers who want newer homes at lower entry points than much of the GTA. Official builder examples from Activa include Trussler West, where pre-construction singles and condo townhomes are available, and The Erinbrook Towns, which are starting from about $499,900 according to the builder website.
Why Kitchener stands out:
Better affordability relative to many GTA submarkets
Family-friendly product mix
Good for first-time buyers who still want new construction
5) Cambridge: best for buyers wanting low-rise communities with a suburban feel
Cambridge can be a solid option for buyers who want more ground-oriented housing and a less dense setting. One official example is Westwood Village, a master-planned Cambridge community with freehold townhomes and several detached lot sizes.
Why Cambridge stands out:
Good for buyers who prefer low-rise housing
Family-oriented setting
Often a practical alternative to higher GTA pricing
6) Waterloo: best for buyers who want established amenities and long-term regional demand
Waterloo appeals to buyers who like the region’s university, tech, and infrastructure profile. Official Activa communities include Vista Hills, with Net Zero Ready and ENERGY STAR certified detached homes, and The Trailside Towns, which offers rear-garage condo townhomes near the Walter Bean Trail and local amenities.
Why Waterloo stands out:
Strong end-user demand
Good long-term regional fundamentals
Great for buyers wanting established schools, parks, and amenities
My practical advice for buyers
If you are a first-time buyer looking at pre-construction right now, this rebate can be meaningful. But the smartest move is not just chasing the tax savings. You want to make sure:
the project fits your real budget
the closing timeline works for you
the builder is reputable
the product type matches your lifestyle
your lawyer and accountant confirm how the rebate will be claimed on your file
The rebate is helpful, but the right home, right location, and right closing plan still matter more than the headline savings.
Final thoughts
Bill C-4 has created a real opportunity for first-time buyers purchasing eligible new homes, including many pre-construction homes. For buyers in Brampton, Caledon, Mississauga, Kitchener, Cambridge, and Waterloo, this can reduce upfront tax costs significantly, especially on homes up to $1 million, with partial relief up to $1.5 million.
If you are thinking about buying pre-construction, the next step is not just to shop projects. It is to first confirm whether you qualify under the CRA rules, and then shortlist communities that make sense for your budget and long-term goals.
Disclaimer: This article is provided for general informational purposes only and does not constitute legal, financial, tax, or real estate advice. Government programs, builder incentives, tax treatment, eligibility rules, and market conditions may change without notice. Always conduct independent due diligence and consult your lawyer, accountant, mortgage professional, and other licensed professionals before making a purchase decision. Aman Khattra is a licensed real estate agent with Royal LePage Platinum Realty. This content is intended for educational purposes only.
