First-Time Home Buyers (FTHB) GST/HST rebate officially in effect

On March 12 the First-Time Home Buyers (FTHB) GST/HST rebate (Bill C-4) received Royal Assent, and is now officially in effect.  Please click here to read more about how the rebate can benefit the building materials industry. 

 

The FTHB GST/HST rebate allows first-time home buyers to:

1) Eliminate the GST (or federal part of the HST) on a new home valued up to $1 million.

2) Reduce the amount of tax paid on a new home valued between $1 million and $1.5 million. 

 

The GST/HTS rebate also includes substantial renovation (i.e., at least 90% of the house must be renovated). For example, 90% of the square meters of a house would have to be renovated. A major addition, such as a new room, would not be considered a substantial renovation. For the major addition to be considered under the GST/HST rebate the work must be extensive enough for the final result to be considered a newly built home. For more details on what qualifies as a substantial renovation and the full breakdown of the GST/HST rebate please see the GST/HST New Housing Rebate Guidebook, or the first-time homebuyers’ (FTHB) GST/HST rebate webpage. 

Supply-Build Canada members and their clients could benefit from this rebate as it should incentivize more homebuilding and substantial renovations as it offers money saving benefits. Consequently, more homebuilding and renovations require more building materials.