The Canadian government has faced criticism for the slow delivery of tax relief promised to first-time homebuyers, as revealed in recent federal data. Only a small fraction of the 7,500 applications received have been approved for the goods and services tax (GST) rebate, with just 150 applicants successfully receiving the benefit.
The federal rebate program aims to exempt first-time homebuyers from paying GST on newly built or substantially renovated homes valued up to $1 million, potentially saving them up to a maximum rebate of $50,000. Finance Minister François-Philippe Champagne acknowledged the government’s shortcomings in implementing the rebates, emphasizing the importance of affordability measures.
According to the data, the average processing time for rebate applications nationwide is currently 50 days. As of June 19, 620 applicants have been denied the rebate, while 6,700 applications are still awaiting a response. Among the approved applications, 130 are from Quebec, while the remaining 20 are from other parts of Canada.
The government has disbursed a total of $3,577,000 for approved rebate applications, out of the allocated $68.2 million set aside over three years starting from 2026-27. The average rebate amount paid out so far is approximately $24,000 per applicant.
A parliamentary budget officer analysis projected that the GST rebate would save first-time homebuyers an average of $26,832 on newly built homes, with an estimated 71,000 qualifying properties over the program’s lifespan.
The slow rollout of the GST rebate stems from delays in the legislative process, with the rebate not receiving royal assent until March 2026 as part of the Liberals’ affordability Bill C-4. The government anticipates an increase in the uptake of the rebate now that the legislation is in place, aiming for a more efficient and widespread distribution of the tax relief.