Buying your first home in British Columbia can be both exciting and overwhelming. Between rising home prices, saving for a down payment, and covering closing costs, it can feel like an uphill climb for first-time home buyers. The good news? The federal government has proposed a new First-Time Home Buyers (FTHB) GST/HST Rebate that could make homeownership a little more affordable,  especially for buyers here in Nanaimo and across Vancouver Island.

Why first-time home buyers need more support

For many Canadians, especially younger generations and newcomers, owning a home has become a major challenge. With the average price of a new home in British Columbia often exceeding $800,000, every bit of savings matters. The proposed FTHB rebate is designed to ease that burden by reducing or eliminating the federal portion of the GST/HST on new homes for qualifying first-time buyers.

What is the proposed FTHB GST/HST rebate?

The proposed rebate aims to eliminate the GST (or federal portion of HST) for eligible first-time buyers purchasing a newly built or substantially renovated home valued up to $1 million. For homes priced between $1 million and $1.5 million, the rebate will gradually phase out. Homes valued at $1.5 million or more would not qualify.

Here’s how it would work:

• Homes up to $1 million: Up to 100% of the GST/HST (federal portion) could be rebated, that’s up to $50,000 in savings.
• Homes between $1 million and $1.5 million: A partial rebate applies, gradually decreasing as home value increases.
• Homes above $1.5 million: No rebate is available.

Once enacted, this rebate would “top up” the existing GST/HST New Housing Rebate, giving first-time home buyers additional savings.

Who may be eligible

To qualify as a first-time home buyer under this proposal, you must meet all of the following conditions:

• Be at least 18 years old
• Be a Canadian citizen or permanent resident
• Not have owned (or jointly owned) a home you lived in as your primary residence in the current or previous four calendar years, including homes in or outside Canada
• Not have previously received a First-Time Home Buyers GST/HST Rebate

You may be eligible if you:

• Purchase a newly built or substantially renovated home from a builder
• Buy shares in a co-op housing corporation to live in a newly built or renovated unit
• Construct or substantially renovate your own home (that you didn’t previously live in)

How to apply for the rebate

At this stage, applications are not yet available. The proposed legislation must receive Royal Assent before the Canada Revenue Agency (CRA) begins accepting applications. Once approved, buyers will be able to apply using updated forms, similar to how the existing GST/HST New Housing Rebate works.

If you buy a new home from a builder before the legislation receives Royal Assent, you will need to:

1. Pay the GST/HST to the builder at the time of purchase.
2. Apply directly to the CRA for the rebate once the program is officially in effect.

The CRA will update the following forms once the rebate becomes law:

• Form GST190 – GST/HST New Housing Rebate Application for Houses Purchased from a Builder
• Form GST191 – GST/HST New Housing Rebate Application for Owner-Built Homes
• Guide RC4028 – GST/HST New Housing Rebate

Why this matters for Nanaimo first-time buyers

In markets like Nanaimo, Ladysmith, and Parksville, new housing development continues to expand. Many first-time buyers are considering townhomes, duplexes, or new construction properties that could qualify under this rebate. For those stretching their budget, saving thousands in GST/HST can make a huge difference, helping cover closing costs, furniture, or renovations.

Quick example:

If you buy a brand-new home for $850,000 in Nanaimo, you could save up to the full $50,000 rebate if the proposed legislation becomes law. That’s a significant boost for your first home purchase.

Tips for first-time home buyers in Nanaimo

• Work with a trusted REALTOR® who understands local new construction and builder pricing.
• Plan your budget with all costs in mind, down payment, insurance, legal fees, inspections, and taxes.
• Monitor government announcements for when the rebate officially becomes available.
• Speak with a mortgage broker or accountant to estimate your savings and ensure eligibility.

Frequently Asked Questions (FAQ)

1. Is the First-Time Home Buyers GST/HST rebate available right now?

No, the rebate is not yet available. It will come into effect once the legislation receives Royal Assent.

2. How much could I save with this rebate?

Eligible first-time buyers could recover up to 100% of the GST/HST (federal portion) paid, up to a maximum of $50,000.

3. Can I combine this rebate with other programs?

Yes. If eligible, you can combine the new FTHB GST/HST rebate with the existing GST/HST New Housing Rebate, as well as other programs like the First-Time Home Buyer Incentive or RRSP Home Buyers’ Plan.

4. Does this apply to resale homes?

No. The rebate only applies to newly built or substantially renovated homes.

5. Can I qualify if I’m buying with my spouse who owned a home before?

No. Both you and your spouse or common-law partner must meet the first-time home buyer definition.

6. What if my home costs more than $1 million?

Homes between $1 million and $1.5 million may qualify for a partial rebate. Homes priced $1.5 million or higher do not qualify.

7. How do I apply once it becomes available?

You will apply directly to the CRA using updated forms. Builders cannot apply on your behalf for this rebate.

8. Will builders adjust prices to account for this rebate?

It depends on market conditions. Some may promote it as a savings advantage, but pricing is driven by supply and demand.

9. Does this rebate apply to condos and townhomes?

Yes, as long as they are newly built or substantially renovated and meet the eligibility criteria.

10. Where can I get updates on when applications open?

You can visit the CRA’s website or reach out to your local REALTOR® (like me!) for the latest updates and practical guidance.

Final Thoughts

The proposed First-Time Home Buyers GST/HST Rebate represents a positive step toward making homeownership more achievable for Canadians. If approved, it could help many first-time buyers in Nanaimo and across BC take that long-awaited step into their first home with a lighter tax load and more financial breathing room.

As always, if you’re planning to buy your first home in Nanaimo or anywhere on Vancouver Island, I’d be happy to guide you through the process, from understanding your rebate options to finding a home that fits your budget and goals.

John Ion Bucur, REALTOR® | eXp Realty
nanaimohomesales.ca | 📞 250-961-0001 | 📧 john@nanaimohomesales.ca

Disclaimer: This article is for informational purposes only and reflects the proposed legislation as of the time of writing. Details may change once the law receives Royal Assent. For official information, visit the Canada Revenue Agency or speak with a qualified tax professional.