If you’re a first-time home buyer, there’s a new federal incentive that could significantly reduce your costs. As of May 27, 2025, a new GST rebate is available to help make new home purchases more affordable.
This rebate could provide savings of up to $50,000—and here’s everything you need to know to take advantage of it.
What Is the New GST Rebate?
The federal government is offering a rebate on the GST (or the federal portion of HST) for qualifying first-time home buyers purchasing or building new homes.
Here’s how it works:
- 100% rebate for new homes priced up to $1 million
- Phased-out rebate for homes priced between $1 million and $1.5 million
(For example, a $1.25 million home would receive a 50% rebate) - No rebate for homes priced $1.5 million or more
This applies whether you’re buying from a builder, building your own home, or purchasing shares in a co-op housing corporation.
Who Is Eligible?
To qualify, at least one buyer must:
- Be a first-time home buyer, which means you haven’t lived in a home you or your spouse/common-law partner owned in the current or previous four calendar years
- Be 18 years of age or older
- Be a Canadian citizen or permanent resident
- Intend to use the home as your primary residence
- Be the first person to occupy the home
This rebate is available for:
- New home purchases directly from a builder
- Owner-built homes or homes built by hired contractors
- Shares purchased in co-op housing (as long as the co-op is not eligible for the 100% rental rebate)
Key Dates and Construction Requirements
Timing is critical to qualify for this rebate:
- Purchase agreements must be signed on or after May 27, 2025 and before 2031
- Construction must begin before 2031
- Home must be substantially completed and occupied before 2036
The same dates apply to owner-built homes and co-op housing.
Important Limitations
- This is a one-time rebate per individual. If you or your spouse/common-law partner has already claimed the rebate, you’re not eligible again.
- Assignments are not eligible if the original purchase agreement was signed before May 27, 2025.
- Re-signing a contract that was originally dated before May 27, 2025 to try and qualify may result in denial of the rebate.
Final Thoughts
This new rebate has the potential to help many first-time buyers access the market, especially those interested in purchasing or building new homes. If you’re planning a new build or are considering buying a new construction property, now is a great time to start planning.
Have questions about how this impacts your mortgage plans? I’m here to help you understand your options and make the most of every program available.
Official Source and Full Details:
GST Relief for First-Time Home Buyers on New Homes Valued up to $1.5 Million
