Like getting paid to buy a new home.
No savings needed.*

Can first-time buyers get the GST back on a new home?

Yes. Eligible first-time buyers get the full 5% GST back on a newly built home up to $1 million, worth up to $50,000.

Homes between $1 million and $1.5 million get a partial rebate.

The rule became law in March 2026 and applies across Canada.

Last updated: November 2026

Sources: First-time home buyers' GST/HST rebate (Canada.ca), The Home Buyers' Plan (Canada.ca), First Home Savings Account (Canada.ca)

Five steps from renting to a brand new home

1. Fund the RRSP

   Use RRSP savings you already have, or top up with an RRSP loan.

   The money has to sit in your RRSP for at least 90 days before you withdraw it under the Home Buyers' Plan. You do not have to wait to start looking. You can shop and write offers right away. Possession just needs to be 90 or more days after the contribution.

2. Withdraw it as your down payment

   The Home Buyers' Plan lets a first-time buyer withdraw up to $60,000 tax free, or $120,000 as a couple.

   You pay it back to your own RRSP over 15 years, starting the second year after the withdrawal. On $25,000 that works out to about $140 a month.

3. Claim the RRSP deduction and collect the refund

   The contribution lowers your taxable income, so you get a tax refund.

   The size of the refund depends on your income and how much you put in. For example, a $25,000 contribution returns about $6,000 at $60,000 of income, or about $7,500 at $100,000 of income.

4. Claim the First-Time Home Buyers' GST Rebate

   Full 5% GST back on a new build up to $1,000,000, to a maximum of $50,000.

   The rebate phases down between $1,000,000 and $1,500,000, and there is none above that. On a $500,000 new home, that is $25,000. It is credited at closing by the builder, or claimed from CRA after closing.

5. Use the refund and rebate to clear the RRSP loan

   The money that comes back pays off the loan, and you keep the rest.

   Example on a $500,000 new home with a $25,000 RRSP loan: about $6,000 tax refund plus a $25,000 GST rebate is about $31,000 back. That pays off the $25,000 loan with about $6,000 left over.*

Straight answers to common questions

Can I buy a house in Canada with no money saved?

Often yes, if you buy a new build and qualify for a mortgage. Many first-time buyers fund their RRSP, sometimes with an RRSP loan, withdraw it under the Home Buyers' Plan as the down payment, then use the tax refund and GST rebate to repay the loan. You still need cash for closing costs.

How does the First-Time Home Buyers' GST Rebate work?

It refunds the full 5% GST, up to $50,000, on a new home priced up to $1,000,000. The rebate phases down to zero between $1,000,000 and $1,500,000. Your purchase agreement must be signed on or after March 20, 2025 and before 2031, and the home must be your primary residence.

How much can I take out of my RRSP to buy my first home?

You can withdraw up to $60,000 from your RRSP under the Home Buyers' Plan, or $120,000 as a couple when you both qualify. The withdrawal is tax free as long as you repay it on schedule. Each person withdraws from their own RRSP, and contributions must sit there at least 90 days first.

What is the 90-day rule for the RRSP Home Buyers' Plan?

Money you contribute must stay in your RRSP for at least 90 days before you withdraw it under the Home Buyers' Plan, or you lose the tax deduction on that contribution. You can still shop and make offers right away. Just set your possession date 90 or more days after the contribution.

Can I use an RRSP loan for my down payment?

Yes. Many buyers borrow to fund their RRSP, wait 90 days, then withdraw the money under the Home Buyers' Plan as their down payment. The loan payment counts when a lender works out what mortgage you qualify for, and the loan must be repaid, usually with your tax refund and GST rebate.

How much tax refund do I get from an RRSP contribution?

It depends on your income and province. Your refund is roughly your contribution times your marginal tax rate. In Alberta, a $25,000 contribution returns about $6,000 at $60,000 of income, or about $7,500 at $100,000. An accountant can estimate your exact refund before you contribute.

Does the GST rebate apply to resale homes?

No. The First-Time Home Buyers' GST Rebate only applies to newly built or substantially renovated homes, not resale homes. You can still use the RRSP Home Buyers' Plan on a resale home. Ontario also offers a provincial HST rebate on new homes, so confirm the rules in your own province.

What is the minimum down payment on a $700,000 home in Canada?

The minimum down payment on a $700,000 home in Canada is $45,000. That is 5% of the first $500,000, which is $25,000, plus 10% of the remaining $200,000, which is $20,000. With less than 20% down, you also need mortgage default insurance, which is added to your mortgage.

Do I have to pay back the Home Buyers' Plan?

Yes. You repay the Home Buyers' Plan to your own RRSP over 15 years, starting the second year after your withdrawal. On $25,000 that is about $1,667 a year. Any yearly amount you skip is added to your taxable income for that year, so you pay tax on it instead.

Who qualifies as a first-time home buyer in Canada?

You qualify as a first-time home buyer in Canada if you did not own and live in a home during the last 4 years. That includes a home owned by your current spouse or common-law partner. So if you owned a home years ago and have rented since, you may qualify again.

Frequently Asked Questions

About the RRSP & Down Payment

Do I have to pay back the RRSP Home Buyers' Plan?

Yes, you repay it to your own RRSP over 15 years, not to a bank. You have 15 years to repay the amount you withdrew, starting 2 years after you took the money out (or 5 years if you withdrew between 2022 and 2025). Each year you repay 1/15th of the total. If you don't make a payment in a given year, that year's portion just gets added to your taxable income. You don't lose the home or get penalized beyond that.

Can I use the Home Buyers' Plan if I have no RRSP savings?

Yes, many buyers top up their RRSP with a short-term RRSP loan first. You take out a short-term personal loan, deposit it into your RRSP, wait 90 days, then withdraw it as your down payment. Your tax refund and GST rebate are then used to pay off that loan. That is why this can work even if you have not saved much. You still need to qualify for the mortgage, and the RRSP loan payment is counted when the lender works out what you can afford.

How long does money have to be in my RRSP before I can use it for a home?

Yes, at least 90 days. The CRA requires that any RRSP contributions sit in the account for at least 90 days before you withdraw them under the Home Buyers' Plan. If you pull it out earlier, it won't qualify as a tax-deductible contribution and you'll lose the tax benefit. So timing matters: your possession date needs to be scheduled after those 90 days are up.

Can couples both use the RRSP Home Buyers' Plan?

Yes, each first-time buyer can withdraw up to $60,000, or $120,000 together. If you're buying together and you both qualify as first-time home buyers, you can each withdraw up to $60,000 from your own individual RRSPs, for a combined total of $120,000. You'd also each get your own tax refund when you file, so the cash-back benefit doubles.

Who counts as a first-time home buyer in Canada?

You count as a first-time buyer if you have not lived in a home you or your current spouse owned in the last 4 years. You don't have to have literally never owned a home. Under the CRA's rules, you qualify as a first-time buyer as long as you haven't lived in a home that you (or your current spouse/common-law partner) owned in the last 4 years. So if you owned a home 5+ years ago and have been renting since, you likely qualify again.

Can I make more than one Home Buyers' Plan withdrawal?

Yes, you can make multiple withdrawals, but they all have to happen within the same calendar year as your first withdrawal, or in January of the following year. The total across all withdrawals just can't exceed $60,000. Most people do it in one withdrawal to keep things simple.

About Buying a New Build

Does the GST rebate work on a resale home?

No, the GST rebate only applies to new builds, but the Home Buyers' Plan works on both. The RRSP Home Buyers' Plan works for both new builds and resale homes. However, the GST rebate, which is a big part of what makes the math work, only applies to new builds (newly constructed or substantially renovated homes). If you buy a resale home, you skip the GST rebate, which reduces the total cash-back significantly. For this specific strategy, new builds are strongly preferred.

What types of new homes qualify for the GST rebate?

Almost all of them: condos, townhomes, duplexes, semi-detached, and single-family homes all qualify. The home just needs to be in Canada, newly built (or substantially renovated), and intended to be your primary residence within one year of taking possession.

Can I use the GST rebate or Home Buyers' Plan on a rental property?

No. Both the RRSP Home Buyers' Plan and the GST New Housing Rebate require the home to be your primary residence: the place you actually live. You can't use these programs to buy an investment property or a home you plan to rent out right away.

About Mortgage Approval & Finances

Does an RRSP loan affect my mortgage approval?

Yes, it can, because the loan payment counts against your debt ratios. Lenders look at your total debt load when calculating how much mortgage you qualify for. If you have an outstanding personal loan (the RRSP loan), it counts against your debt ratios. This is why the strategy is designed to pay off that loan quickly using the tax refund and GST rebate before or shortly after closing. Your mortgage broker needs to know about the loan upfront so they can structure the approval correctly. Getty Group connects you with mortgage professionals who know how to navigate this.

Does an RRSP loan hurt my credit score?

Only a little and usually briefly. Taking out a personal loan does involve a credit check, which can temporarily lower your score by a small amount. As long as you make your loan payments on time and pay it off as planned, your credit score should recover quickly. Having a mortgage and paying it consistently will actually help build your credit over the long run.

What is the minimum down payment in Canada?

It is 5% of the first $500,000, plus 10% of the portion above that up to $1,499,999. In Canada, the minimum down payment on a home under $500,000 is 5% of the purchase price. On a $400,000 home, that's $20,000. On a $500,000 home, that's $25,000. This is exactly why the strategy is built around roughly $25,000: it covers the minimum down payment on homes in that range. If you need a larger down payment, the RRSP limit goes up to $60,000 per person.

Do I still need cash for closing costs?

Yes. Even when the down payment comes from your RRSP, you still need some cash for closing costs like legal fees and property tax or utility adjustments. Plan on roughly 1.5% of the purchase price. Spark Financial Group can give you a clear number for your situation.

How much income do I need for this strategy?

You need enough income to qualify for a mortgage, which depends on your debt ratios, credit history, and the price of the home you're buying. The higher your income, the bigger your tax refund from the RRSP contribution, which means more cash back. That said, even moderate incomes can make this work, especially on lower-priced new builds. A mortgage pre-approval conversation is the best first step.

What if mortgage rates change before my new build is ready?

Most lenders let you hold a rate for 90 to 120 days, which matters for new builds since there's often a gap of several months (sometimes longer) between signing and possession. Most lenders offer a rate hold for 90 to 120 days, and some builders have preferred lender programs with longer holds. Getty Group works with mortgage professionals who can lock in your rate early and advise on the best timing.

About the Tax Refund & GST Rebate

How do I claim the RRSP tax refund?

You claim your RRSP contribution as a deduction when you file your taxes. When you file your income taxes for the year you made the RRSP contribution, you claim the contribution as a deduction on your tax return. Your financial institution sends you an RRSP contribution receipt, and you include that with your filing. CRA then calculates your refund based on your income and tax bracket. Most people file with an accountant or tax software. It's a standard deduction and not complicated.

How much is the First-Time Home Buyers' GST Rebate?

It is the full 5% GST, up to $50,000, on new homes up to $1 million. First-time home buyers now get the full 5% GST back on new builds.

New homes valued up to $1 million: the GST is fully eliminated, 100% back.

Homes between $1 million and $1.5 million: the rebate phases out linearly. For example, a $1.25M home gets roughly $25,000 back. Homes at $1.5M or more don't qualify.

The maximum rebate is now $50,000, up from the old cap that was limited to homes under $450,000. Your purchase agreement must be signed on or after March 20, 2025 (and before 2031) to qualify.

Is the GST rebate available across Canada?

Yes, the First-Time Home Buyers' GST Rebate is federal, so it applies in every province and territory. In provinces with HST, it covers the 5% federal part. Some provinces, like Ontario, also offer their own rebate on the provincial part, so check the rules where you are buying.

How long does it take to get the GST rebate?

It is instant if your builder credits it at closing, or about 4 to 8 weeks if you apply to CRA. If your builder credits the rebate at closing (which is common on new builds), you see it immediately as a reduction in your purchase price, with no waiting. If the builder does not credit the rebate, you can apply directly with the CRA using Form GST190 through your CRA account or by mailing it in. It typically takes 4 to 8 weeks to receive your money after applying. Either way, you're getting it. It's just a question of when.

Is the GST rebate taxable?

No. The GST/HST rebate is not considered taxable income. You don't report it on your tax return and you don't pay tax on it. It's money the government returns to you, not earnings.

How big is the RRSP tax refund?

It is not a fixed amount: it depends on your income and tax bracket. The more you earn, the higher your marginal tax rate, and the bigger your refund. On a $25,000 RRSP contribution, someone earning $60,000 might get back about $6,000, and someone earning $100,000 might get back about $7,500. An accountant can give you a precise estimate before you even start.

Can the builder take the GST rebate off the purchase price?

Yes, and this is the most common way it works. Most builders in Canada will simply subtract the GST rebate from your purchase price at closing, so you never pay that tax to begin with. Instead of buying a $500,000 home and later getting $25,000 back from CRA, you'd effectively pay $475,000 at closing. Same result, less waiting.

The builder handles the paperwork and claims the rebate from CRA on your behalf. You just sign off on it. The important part is making sure you actually qualify as a first-time buyer before the builder credits it, because if CRA later determines you weren't eligible, they can come back to collect.

If your builder does NOT offer to apply it at closing, don't worry. You can always apply directly to CRA yourself after closing using Form GST190. The money is yours either way. Bottom line: Ask your builder upfront how they handle the rebate. Getty Group will make sure this conversation happens before you sign anything.

Other Programs & Stacking Benefits

Can I use the FHSA and the RRSP Home Buyers' Plan together?

Yes, and this is one of the most powerful combinations available. The FHSA lets you save up to $40,000 tax-free (up to $8,000/year) specifically for a home. Unlike the RRSP, you never have to pay the FHSA money back. You can use FHSA funds AND withdraw under the HBP on the same purchase, stacking both benefits together.

What is the First-Time Home Buyers' Tax Credit?

It is a federal tax credit worth up to $1,500 back on your taxes in the year you buy your first home. You claim it on your tax return the same year as your purchase. It's automatic: you just check the box on your return. It's not a huge amount but it's free money that requires zero extra work.

Is there a land transfer tax in Alberta?

No, Alberta does not have a provincial land transfer tax, which is a major advantage compared to Ontario or BC where buyers can pay $10,000 to $30,000+ just in land transfer taxes on top of everything else. This makes Calgary and Alberta one of the most cost-effective places in Canada to buy a first home using these programs.

What happens if my home purchase falls through after a Home Buyers' Plan withdrawal?

You have until October 1 of the next year to buy a qualifying home or put the money back. If your purchase falls through, you have until October 1st of the year after your withdrawal to either buy a qualifying home or put the money back into your RRSP. If you do neither, the withdrawn amount gets added to your taxable income for the year, meaning you'd owe tax on it. This is why having a solid purchase agreement in place before withdrawing is important.

Can self-employed buyers use the Home Buyers' Plan and GST rebate?

Yes, self-employed buyers can absolutely use the RRSP Home Buyers' Plan and claim the GST rebate. The difference is that getting mortgage-approved as self-employed requires a slightly different process (typically 2 years of T1 generals or business financials). Getty Group connects self-employed clients with mortgage specialists who work with these situations regularly.

Working With Getty Group

Will Getty Group pressure me to buy?

No. The consultation is genuinely no-pressure. The goal is to walk you through the numbers specific to your situation so you can make an informed decision on your own timeline. Some clients are ready to move in 30 days. Others take 6 months. Either way, there's no obligation.

Does it cost anything to work with Getty Group as a buyer?

Nothing. As a buyer's agent in Alberta, Getty Group is compensated by the seller or builder, not by you. You get a full team (agent, mortgage connection, builder relationships) at zero cost to you as the buyer.

Can parents help their adult child use this strategy?

Yes, this is actually one of the most common conversations. If your child is a first-time buyer, they can go through this entire strategy independently. Some parents also choose to gift or lend the RRSP loan amount to their child rather than the child taking a personal loan, which is another variation of the strategy. Getty Group can walk through both options.