Three separate programs now point in the same direction for first-time buyers. Used together they are worth far more than any one of them alone.
The GST rebate
On an eligible newly built home, the 5% federal GST is fully rebated up to a $1,000,000 price, then phases out to zero at $1,500,000. On a $900,000 new build that is $45,000 — money that would otherwise have to be financed.
It applies to new construction and substantial renovations, not resale homes. At least one buyer must be a first-time buyer who will occupy the home as a primary residence.
Stacking the three
| Source | Amount | Tax treatment |
|---|---|---|
| FHSA, two accounts | $80,000 | Deducted in, tax-free out |
| HBP, two withdrawals | $120,000 | Tax-free, repaid over 15 years |
| GST rebate | $42,500 | Reduces the purchase price |
| Total sheltered | $242,500 |
Not every couple has $200,000 of registered savings to draw on. But the order of operations holds at any scale: FHSA room first because it is both deductible and tax-free, then the HBP, and let the rebate reduce the price you finance.
Run it on your own numbersDown payment planStack FHSA, the Home Buyers’ Plan and cash savings into a dated timeline.Three timing traps
- The FHSA must exist before it accrues room. Opening it in 2026 gives you 2026 room. There is no retroactive accumulation back to 2023.
- HBP withdrawals need the funds in the RRSP for 90 days before you take them out. Last-minute contributions do not qualify.
- The rebate is claimed through the builder or on filing, depending on the agreement. Confirm which before you sign the purchase agreement.
What it does to affordability
A larger down payment cuts the loan, and at 20% down it also eliminates the CMHC premium entirely. On an $850,000 purchase, moving from 10% to 20% down saves roughly $24,000 of financed insurance premium on top of the interest saved.
Run it on your own numbersHome affordabilityCheck the price you qualify for at the stress-test rate.Figures are the published 2026 federal and provincial amounts at the time of writing. General information only, not financial, tax, or legal advice — see the methodology and disclaimer.