Tax Savings for First Time Buyers
Getting a Rebate Is the First Step. Claiming It Correctly Is the Second.
By Tara Webber | Mortgage Broker & Life Insurance Advisor | BeOne Financial Group - Northern BC | Prince George BC
I want to share a few programs that Canadian homebuyers should know about — the Home Buyers' Amount tax credit, the GST rebate on new construction and major renovations, and the newly passed first-time buyer rebate of up to $50,000.
You may have heard of them, but you're likely wondering, what do I actually need to do to claim them?
It's a great question. And the honest answer has two parts — a summary of what each program actually is, and a clear-eyed reminder about where my lane ends and your accountant's begins.
A Quick Recap: The Three Programs Worth Knowing
Here's a plain-language summary of the programs available currently: Maximum Benefit
1) Home Buyers' Amount
For first-time buyers (broadly defined)
Up to $1,500 tax credit
2) GST/HST New Housing Rebate
For anyone buying new construction or doing a major renovation as principal residence
Rebate amount varies by purchase price
3) GST/HST New First-Time Buyer Rebate
First-time buyers of new builds or major renovations (90% is considered the benchmark)
Up to $50,000
The Home Buyers' Amount
This is a federal non-refundable tax credit worth up to $1,500. It's based on a $10,000 claim amount multiplied by the 15% federal tax credit rate. Because it's non-refundable, it reduces what you owe in taxes — but it won't generate a refund beyond your actual tax bill. If you and a partner are both eligible, you can split the claim, but the total between you can't exceed $1,500 for a given home.
"First-time" is defined more broadly than most people expect: you and your spouse cannot have owned and lived in a principal residence in the current year or any of the four preceding years. That means some people who have previously owned a home may still qualify, depending on their circumstances.
This credit is claimed on your T1 income tax return. Your closing documents — showing the purchase date and address — are what you'll want on hand when you file.
The GST/HST New Housing Rebate
This rebate is available to anyone who purchases a newly built home or undertakes a thorough renovation of an existing property as their principal residence. It's not limited to first-time buyers — this one is broadly available and frequently overlooked at the time of closing.
The rebate is designed to return a portion of the GST or HST paid on a new build or significant renovation. The amount varies depending on the purchase price and your specific situation, and CRA has specific forms associated with the claim — the GST190 or GST191 depending on the circumstances.
This is one where the details matter considerably. What qualifies as a "thorough" renovation has a specific definition under CRA guidelines, and the timing of your claim has rules attached to it. This is not a rebate you want to guess at.
The New First-Time Buyer Rebate — Now Law
This is the newest development. Legislation has now passed that introduces a significant enhancement to the rebate available for first-time buyers purchasing a new build or undertaking a major renovation as their principal residence. Eligible buyers can now access a rebate of up to $50,000.
The rebate may be applied at closing directly by the builder, or you may have to apply to the CRA directly depending on the details. This is precisely the kind of situation where current, professional tax advice matters more than anything I could publish in a blog post.
So What Do You Actually Need to File?
This is the part where I want to be genuinely straight with you, because I think it matters more than giving you a list that might be incomplete or out of date.
I am your mortgage broker and your insurance advisor. My job is to make sure you know these programs exist, that your purchase is structured in a way that allows you to access them, and that nothing gets missed in the process of getting you into your home. I take that seriously.
The tax filing side — the specific forms, the documentation requirements, the current CRA processing guidelines for newly passed legislation — that is your accountant's lane. And given how recently some of this has changed, getting advice from a qualified tax professional or directly from CRA is the right move.
What I'd encourage you to do:
1. Flag these programs specifically with whoever does your taxes — don't assume they'll come up automatically.
2. Bring your closing documents, purchase agreement, and any correspondence from your lender to that conversation.
3. For the GST rebate and the new first-time buyer rebate, check the current CRA guidelines at canada.ca — particularly for the newer legislation, as administrative details may have been updated since any third-party summary was written.
4. If you don't have an accountant, that's worth fixing. I'm happy to point you toward someone I trust.
Why I'm Telling You to Talk to Someone Else
Because that's what a good advisor does.
In powerlifting, I spent years learning exactly what I'm good at and exactly where I need to defer to someone with more specific expertise. Louie Simmons was one of the greatest coaches in the history of the sport — but even he sent athletes to physiotherapists, chiropractors, and sports medicine doctors when that's what they needed. Knowing your lane isn't a weakness. It's what separates advisors who genuinely help from those who just sound confident.
My lane is making sure you get into the right mortgage with the right structure, that your insurance actually protects your family the way you think it does, and that you know every program available to you as a buyer. When it comes to executing the tax side of those programs — I'll make sure you know what to ask for, and then I'll point you to the right person.
That's the standard I hold myself to. And it's the standard you deserve from anyone you work with.
If you have questions about any of the programs mentioned in this post — or you're planning a purchase and want to make sure you're not leaving anything on the table — reach out. That conversation is free.
And if you need a referral to a trusted accountant in Prince George, I can help with that too.
📞 250.617.9838
