Canada’s New GST Rebate for First-Time Home Buyers: All You Need to Know

On May 27, 2025, the Canadian government introduced a groundbreaking First-Time Home Buyers’ (FTHB) GST rebate designed to make homeownership more affordable for Canadians purchasing new homes. This new rebate promises to save eligible first-time buyers up to $50,000 by eliminating or reducing the Goods and Services Tax (GST) on new home purchases under $1.5 million.

Source: Storeys

Key Details of the First-Time Home Buyers’ GST Rebate

Full GST rebate on new homes priced up to $1 million
Partial GST rebate on homes priced between $1 million and $1.5 million (e.g., a $1.25 million home qualifies for a 50% rebate, up to $25,000)
No rebate for homes priced at or above $1.5 million

This initiative is expected to deliver approximately $3.9 billion in tax savings over five years, helping young Canadians and first-time buyers reduce upfront homebuying costs and encouraging new home construction nationwide.

Who Qualifies for the GST Rebate?

To qualify for the FTHB GST rebate, buyers must:

Be at least 18 years old.
Be a Canadian citizen or permanent resident.
Have never owned a home (in Canada or abroad) in the current calendar year or the previous four years.
Use the new home as their primary residence.

Eligible home types include:

New homes purchased from a builder.
Owner-built homes on land owned or leased by the buyer.
Shares in a co-operative housing corporation (with certain conditions).

Explore pre-construction homes, and resale listings today to find your perfect property and take advantage of the latest market opportunities.

Important Dates and Conditions

The purchase agreement must be signed on or after May 27, 2025, and before 2031.
Construction must begin before 2031 and be substantially completed by 2036.
The rebate can only be claimed once per individual or couple.

Industry Response and Outlook

While the rebate is widely welcomed as a positive step toward improving housing affordability, industry leaders like the Building Industry and Land Development Association (BILD) and the Canadian Home Builders’ Association (CHBA) urge the government to broaden eligibility beyond first-time buyers to maximize impact and stimulate housing supply.

How Homebuyers Can Benefit

If you’re a first-time buyer looking to purchase a new home, this GST rebate can significantly reduce your upfront costs, making homeownership more accessible. Combined with other incentives and programs, it can be a powerful tool to ease your entry into the housing market.

Explore More on Homebaba.ca

Ready to find your dream home and take advantage of the new GST rebate? Explore the latest listings and resale opportunities right now:

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Source:

Storeys – The Feds’ GST Rebate For First-Time Homebuyers

Disclaimer: The content above is a compilation from diverse reliable online sources, including blogs and news articles. The Homebaba.ca content team does not ensure the factual accuracy of the information. The provided information may be outdated, and it should not be considered as advice or a recommendation. It is advisable to consult with a licensed real estate agent or broker for accurate advice and recommendations.