Great news for first-time home buyers: the federal government has introduced a new GST rebate to make buying a new home more affordable — potentially saving you up to $50,000 on your purchase.
🏡 What Is the First-Time Home Buyers’ GST Rebate?
The First-Time Home Buyers’ GST Rebate (FTHB GST Rebate) will fully refund the 5% federal GST on new homes priced up to $1 million.
For homes priced between $1 million and $1.5 million, the rebate is phased out on a sliding scale. (e.g., a $1.25M home would receive a 50% rebate = up to $25,000.) No rebate applies to homes priced at $1.5 million or more.
Who is Eligible?
To qualify, you must:
- Be at least 18 years old
- Be a Canadian citizen or permanent resident
- Not have owned or lived in a home you (or your spouse/common-law partner) owned in the current year or the previous four calendar years
You must also be purchasing the home as your primary residence, and be the first person to occupy it.
The rebate applies if you:
- Buy a new home from a builder
- Build (or hire someone to build) a home on land you own or lease
- Buy shares in a co-operative housing corporation
Timing & Deadline
You’re eligible if:
- You sign a purchase agreement on or after May 27, 2025, and before 2031
- Construction begins before 2031 and the home is substantially completed before 2036
Important Limitations
There are a few restrictions to keep in mind:
- One-time only: You can only claim the rebate once in your lifetime.
- Shared household: If your spouse or partner has already claimed the rebate, you cannot.
- Assignment sales: If you purchase a home through an assignment of a contract dated before May 27, 2025, you’re not eligible.
- Reworked deals: Rebates may be denied if a builder cancels a pre-May 27, 2025 agreement and reissues or modifies it to appear eligible.
This rebate could make a big difference for first-time buyers who are navigating high housing prices. Want more information? Let’s chat!
