First-Time Homebuyer Rebate (FTHB)

First-Time Homebuyer Rebate (FTHB)


With the recent passing of Bill C-4 (Making Life More Affordable for Canadians Act) Realti has been updated to complete these complex calculations.

This article provides a step-by-step walkthrough on how to configure your Purchase and Sale files to ensure the correct rebates are applied.

Understanding the New Rebates

Before entering data, ensure you identify which rebate applies to your file:

New Home Rebate (Legacy): The standard existing GST New Home Rebate for transactions that do not meet the new criteria. The criteria for this rebate can be found in this publication from the CRA.
FTHB Rebate (Federal): Introduced by Bill C-4, this eliminates the 5% GST on newly constructed homes up to $1,000,000 (savings up to $50,000). Valid for agreements entered into between March 20, 2025, and 2031. More information can be found regarding eligibility criteria here.

How to activate applicable rebates within your file

Follow these steps to capture the applicable rebate for the buyer:
  1. Set the New Home indicator to Yes. This can be located under File Configuration on the Basic screen of the Details tab.
  2. Navigate to the Contract screen and to the GST & Rebate section.
    1. By default there is no indication that GST is included in the price. Select how the GST applies to the transaction by selecting from the "Price Includes GST" dropdown. This will effect the Consideration. Select the specific rebate that was included in the contract price at the time of signing. 
      Two options have been added to this dropdown to handle the First-Time Home Buyer Rebate changes:
                Rebate Applied (Legacy): This is the previous "Rebate Applied" option in the dropdown. No calculations have changed. This is the existing New Home Rebate.
                Rebate Applied (FTHB): This is the new First-Time Home Buyer Rebate as described above.
    2. Verify the Buyer Entitled to GST Rebate selection. Ensure that you have selected the appropriate Rebate that your buyer is entitled to New Home Rebate (Legacy), or FTHB Rebate.  *Buyer eligibility remains the responsibility of the law firm acting for the buyer.
    3. If you select the FTHB Rebate, fields for Construction Start Date and Construction Substantially Completed Date will appear. These dates will need to be filled in for the applicable rebate form.
    4. Buyer to Claim GST Rebate is an existing checkbox that will remove any rebates being credited to the Buyer from the statement of adjustments. Use this only where the Buyer will be claiming the rebate on their own and the rebate will not be assigned to the Builder.
    5. The system will automatically populate the Statement of Adjustments with the updated amounts, as well as the updated GST/HST New Housing Rebate Application (GST190) rebate form.
Example:
The New Home Rebate (Legacy) is included in the Contract, and at least one Buyer is entitled to the First-Time Home Buyer Rebate.


Info
Note: Only one rebate type can be selected at a time.


Indicating a Buyer is a First Time Home Buyer

A Statutory Declaration has been added to both Purchase and Sale files. While this document is not a mandatory requirement to complete the transaction, having it signed by the buyer provides an additional layer of verification that may be desired for your firm's compliance or at the request of a builder. To ensure the document generates correctly with the applicable buyer’s information, please follow the requirements and steps below:

Requirements
For the Statutory Declaration to generate from document list, the following conditions must be met within the file:
  1. New Home: The indicator under File Configuration must say Yes.
  2. Eligible Timeframe: The Agreement of Purchase and Sale must fall between March 20, 2025, and 2031.
  3. Rebate Selection: On the Contract screen, the Buyer Entitled to GST Rebate dropdown must be set to FTHB Rebate.
How to Activate the Declaration for Buyers
The Statutory Declaration is managed at the individual level. You must manually "flag" which buyers are eligible to generate the document.
  1. Navigate to the Buyer section in the left hand navigation. Select your Buyer.
  2. Locate the First-Time Home Buyer indicator on the right-hand side of the window.
  3. Click the indicator to activate it for that specific individual.
  4. The indicator is independent for each person. If all buyers on the file are entitled to the rebate, ensure you repeat this process for each buyer.



Document Generation
Once the above steps are completed, generate the Statutory Declaration Confirming Rebate Eligibility from the Documents screen. The system will generate a separate Statutory Declaration for each buyer you have activated as a First-Time Home Buyer.


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