2 Different FTHB Definitions

Some terms in our industry can have different meanings based on the jurisdiction.

"First-time home buyer" is one of them.

The federal first-time home buyer GST/HST rebate for new home purchases uses its own definition. And it's different from the one you already know from the land transfer tax rebate.

Remember, the land transfer tax rebate comes from the province. The GST/HST rebate comes from the federal government.

Here's the definition for the Ontario land transfer tax rebate:

cannot have ever owned an eligible home, or an interest in an eligible home, anywhere in the world, at any time.

And here's the definition for the federal GST/HST rebate for new homes:

not have lived in a home, whether in or outside of Canada, that you, your spouse, or common law partner owned as your primary place of residence at any time in the calendar year when you must be a first-time homebuyer (year taking title) or in the preceding four calendar years

You'll notice two differences.

1. Owned vs. owned and lived in

Ontario asks one question: have you ever owned a home? Anywhere in the world. It doesn't matter whether you lived in it.

The federal definition only counts a home you owned and lived in as your primary residence.

2. A time limit

Ontario's test has no time limit. If you've owned a home at any point in your life, you're out.

The federal test only looks at the current calendar year and the previous four.

If your client takes ownership in 2026, the question is whether they lived in a home they owned at any point from 2022 to 2026.

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In other words, there will be individuals who qualify as a first-time homebuyer for the purposes of a GST/HST rebate on a new home, but will not get the Land Transfer Tax rebate as a first-time homebuyer.