Big Savings Ahead: New GST Rebate for First-Time Home Buyers!
On May 27, 2025, the federal government introduced a game-changing initiative aimed at making homeownership more attainable for Canadians taking their first step into the housing market. The First-Time Home Buyer (FTHB) GST Rebate offers substantial financial relief for those purchasing or building a new home, potentially saving buyers up to $50,000.
Whether you're a buyer, a builder, or a real estate professional, this rebate represents a major opportunity.
This is what you need to know:
HOW MUCH CAN YOU SAVE?
- Up to a 100% GST rebate on new homes priced up to $1 million.
- A partial rebate for homes valued between $1 million and $1.5 million (e.g., a $1.25M home may receive a 50% rebate).
- No rebate for homes over $1.5 million.
For buyers in high-demand or urban markets, where home prices often stretch into the seven-figure range, this rebate can be a substantial financial boost, making homeownership more affordable.
QUALIFYING PROPERTIES:
- Newly built homes purchased from a builder
- Owner-built homes
- Shares in co-op housing (where GST/HST applies)
WHO'S ELIGIBLE:
To qualify, a buyer must:
- Be 18 years or older
- Be a Canadian citizen or permanent resident
- Not have owned a home (or lived in one owned by a spouse or partner) in the last four calendar years
Additionally, at least one buyer must intend to live in the home as their primary residence. This ensures the program targets individuals buying to live, not to invest.
KEY DATES:
Contract Signing: Must have occurred on or after May 27, 2025, and before 2031.
Construction Completion: Must be substantially complete by 2036.
*Important: The rebate does not apply to contracts signed before May 27, 2025 — including assignments.*
WHAT DOES THIS MEAN FOR YOU?
FIRST-TIME HOME BUYERS
This rebate can make a significant difference in mortgage qualification, allowing for increased purchasing power and reduced long-term debt. Whether you're eyeing a townhome, duplex, or detached build, the GST savings could tip the scales in your favour.
POTENTIAL MARKET EFFECTS
Most expectations are that we will see heightened interest in homes priced between $750K–$1.5M as the rebate will help to drive increased demand in this range.
OUR FINAL NOTES
The FTHB GST Rebate is a once-in-a-lifetime opportunity—literally! Buyers and their spouses or partners can only claim the rebate once, and spouses of prior claimants cannot apply again.
If you're unsure whether you qualify, now is the time to connect with a mortgage professional who understands the details of the program and can advise you accordingly.
Have questions about the market? We're here to help!
If you are planning to buy your first home, this rebate may open the door for you to new opportunities. Let’s connect and make the most of this new incentive together!
Sources:
Read the full announcement from the Government of Canada here.
