Bill C-4 received Royal Assent on March 12, 2026. The rebate is no longer pending. It is not "expected." It is law.

If you are a first-time buyer who signed a purchase agreement for a new home on or after March 20, 2025, and that home is priced under $1.5 million, you may already be eligible for up to $50,000 back in federal GST. The Canada Revenue Agency can now begin processing claims.

Here is what the process looks like, what you need to do right now, and a few things most coverage is getting wrong.

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What Just Changed

For most of the past year, this rebate existed in legislative limbo. The policy was announced, the bill passed the House, cleared the Senate, and sat there waiting for one final procedural step. Buyers who had signed contracts in 2025 had no way to claim anything.

That changed on March 12. With Royal Assent, the rebate is now part of Canadian law under the Making Life More Affordable for Canadians Act. The CRA has the legal authority to process applications. The clock is no longer paused.

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The Numbers

Full rebate: 5% of the purchase price, up to $50,000 on a $1 million home. Below $1 million, the math is simple — you get 5% back. At $900,000, that is $45,000. At $700,000, it is $35,000.

Between $1 million and $1.5 million, the rebate scales down on a sliding scale. At $1.25 million, you are halfway through the phase-out range, so you would receive around $25,000. Above $1.5 million, the new rebate disappears entirely, though the existing GST New Housing Rebate may still apply in some cases.

This is a significant improvement over the existing program, which caps out at $6,300 regardless of the home's value.

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Who Qualifies

The first-time buyer definition matters here, because it is not quite what most people assume.

You qualify if you have not owned and occupied a home as your principal residence — anywhere in the world, not just in Canada — at any point during the four calendar years preceding the year of your purchase. So if you are buying in 2026, the lookback runs from the start of 2022. If you owned and lived in a home at any point during that window, you are not eligible.

Two conditions that get less attention: you must be at least 18 years old, and you must be a Canadian citizen or permanent resident at the time of purchase. Work permit and study permit holders do not qualify, regardless of how long they have lived here.

If you are buying with a spouse or partner, both of you must independently meet the first-time buyer criteria. One person qualifying and one not disqualifies the entire purchase.

The home must become your principal residence. Investment properties do not qualify.

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How the Claim Process Works

Here is the honest picture: the CRA has not yet published updated forms. Form GST190, the application used for GST/HST new housing rebates, is still being updated to include the new first-time buyer provisions. That means you cannot file a complete claim today, but you can and should get ready now.

Check your agreement date. The earliest eligible date under the legislation is March 20, 2025. If your purchase agreement is dated before that, you do not qualify under this program, though the old rebate (up to $6,300) may still apply.

Confirm your home qualifies. The rebate covers newly constructed and substantially renovated homes only. For a renovation to qualify, at least 90% of the interior must be rebuilt. Resale homes are not covered, full stop.

Talk to your builder. Many builders handle the rebate by assigning it to themselves and crediting the buyer at closing, which is already standard practice under the existing GST New Housing Rebate. If your builder plans to do this, it may already be reflected in your purchase contract. If not, you will apply directly with the CRA once the updated forms are available.

Watch the CRA website. Once the Form GST190 is updated, it will be posted at canada.ca/en/revenue-agency. That is the trigger to actually file. You have two years from your closing date to submit, so there is no reason to rush or guess.

Get professional advice before filing. A real estate lawyer or tax accountant can confirm your eligibility and catch issues before they become problems. The eligibility rules have enough nuance that it is worth the cost.

One more important note: this rebate can only be claimed once per individual or couple. There is no second go.

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The Date That Keeps Getting Misreported

A number of sources, including an earlier version of our own article, cited March 19, 2025 as the earliest eligible agreement date. The correct date, confirmed by the Department of Finance, is March 20, 2025. One day's difference, but worth double-checking before you file.

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How This Fits With Other Programs

The GST rebate does not require you to choose between it and other first-time buyer benefits. A buyer purchasing a qualifying new build could stack several programs on the same transaction.

The First Home Savings Account allows contributions of up to $8,000 per year, with a $40,000 lifetime cap per person. Contributions are tax deductible and qualifying withdrawals are tax free. If you have been putting money in since the FHSA launched in 2023, you may have a meaningful pool available.

The RRSP Home Buyers' Plan lets you withdraw up to $60,000 from your RRSP without paying tax at withdrawal, with repayment spread over 15 years.

In BC, the provincial Property Transfer Tax first-time buyer exemption applies to homes under $500,000, with a partial exemption up to $525,000. This is a separate program targeting transfer tax rather than construction tax, and it runs independently of the federal GST rebate.

The First-Time Home Buyers' Tax Credit provides up to $1,500 to offset closing costs, claimed when you file your income taxes. Note that this is different from the GST rebate — they are separate programs and both can apply to the same purchase.

None of these conflict with each other. Stack them where you qualify.

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A Note on Ontario

You will see headlines about combined savings of up to $130,000 for first-time buyers in Ontario. That number requires Ontario's proposed matching HST rebate to pass as law, and it has not yet. Ontario's existing HST New Housing Rebate, worth up to $24,000, is available now. The additional provincial rebate announced alongside Bill C-4 is still proposed legislation.

If you are buying in BC, Ontario's provincial rebate does not apply to your transaction. The federal component, up to $50,000, is what matters here.

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What to Do Right Now

If your purchase agreement is dated on or after March 20, 2025, for a new or substantially renovated home under $1.5 million: talk to your builder about how the rebate will be handled at closing, watch for the updated Form GST190 at canada.ca, and speak with your real estate lawyer if you have any question about eligibility.

The rebate runs through December 31, 2030, so there is no panic required. But for buyers who have already signed, the wait is over.

The content of this article is for informational purposes only and should not be considered financial, legal, or professional advice. Coldwell Banker Horizon Realty makes no representations as to the accuracy, completeness, or suitability of the information provided. Readers are encouraged to consult with qualified professionals regarding their specific circumstances. Government policies may change — verify the latest guidance at canada.ca.