GST Relief Update

The Canadian Home Builders' Association

March 12, 2026

Bill C-4 receives Royal Assent, and is now officially in effect 

After almost a year since the Prime Minister announced the government’s intention to remove the GST on new homes under $1 million and lower it on homes between $1 million and $1.5 million for first-time buyers, Bill C-4 has finally received Royal Assent.

The delay in getting this bill through the many legislative stages and political filibustering has been extremely difficult for industry and for would-be buyers. While the intent of this measure was to increase housing supply, the impact of not getting this through parliament has been the exact opposite.

At every stage and at every opportunity, CHBA has been pressuring the government to pass C-4 in order to allow would-be buyers to move off the sidelines and take advantage of the proposed tax rebate, as well as including the urgency to pass bill C-4 in press releases and media engagement. At the same time, CHBA has also been advocating for an extension of GST relief (more on that below). 

What it means for builders and homebuyers now 

CHBA has received confirmation from the Canada Revenue Agency (CRA) that the forms needed to take advantage of this enhanced rebate will be available shortly (within days – supposedly no later than early next week). CRA will also be hosting a builder-focused webinar to provide more information. CHBA will share the details of both once they become available.

The FTHB GST Rebate is available to qualifying purchasers if the agreement of purchase and sale for the home was entered into with the builder on or after March 20, 2025 and before 2031. If ownership was transferred to the buyer before the proposed legislation received Royal Assent, the buyer will need to apply separately to the CRA for the FTHB GST/HST rebate. Now that the legislation has received Royal Assent, builders will be able to credit the FTHB GST/HST rebate to their buyers using the CRA forms going forward.  

CHBA will continue advocating for extension of the GST relief

While pushing for C-4 to be approved, CHBA has also been advocating for an extension of GST relief to all buyers of new homes (not solely first-time buyers), which would enable move-up buyers and downsizing buyers to purchase new homes and ensure a further boost of housing supply, freeing up entry-level homes for first-time buyers in the existing housing market. 

CHBA also recommends including renovations that result in additional housing, like accessory dwelling units (ADUs) and secondary suites in the eligibility criteria, given they are important forms of new housing units (and would also enable the renovation industry to get moving on more supply). 

CHBA will continue to push for these additional measures.