If you're a first-time home buyer in Canada, there's some exciting news you’ll want to hear, especially if you’ve been thinking about buying a brand-new home. As of May 27, 2025, the federal government has introduced a new GST rebate designed specifically for first-time buyers. The goal? To make it easier and significantly more affordable to enter the housing market.
So, what exactly does this mean for you?
In this blog, we’ll break down who’s eligible, what the limitations are, and why this rebate is a game-changer for anyone considering a new build as their first home.
So, What’s the Deal?
Under this new incentive, first-time home buyers can now get 100% of the GST back on new homes valued up to $1 million. That could mean savings of up to $50,000, a massive relief at a time when housing affordability is top of mind for many Canadians.
For homes priced between $1 million and $1.5 million, the rebate is gradually reduced. For example, if you buy a new home for $1.25 million, you’d still be eligible for a 50% GST rebate, a potential $25,000 in savings. Once the price hits $1.5 million or more, the rebate phases out entirely.
Who’s Eligible?
Simple. To qualify, you must:
Be 18 or older
Be a Canadian citizen or permanent resident
Not have owned a home (or lived in one owned by your spouse or partner) in the current or past four calendar years
The rebate applies to:
New homes purchased from a builder
Owner-built homes
Shares in a co-operative housing corporation
There are a few time-sensitive details: The purchase agreement must be signed on or after May 27, 2025 and before 2031, and construction needs to be substantially complete by 2036.
Why This Is a Big Win for First-Time Buyers:
Let’s face it, coming up with a down payment, covering closing costs, and paying GST on top of everything else can be overwhelming. This rebate helps ease the financial pressure and puts more money back into your pocket right when you need it most.
But beyond the immediate savings, this program also makes new construction more appealing. Traditionally, new builds come with a higher price tag than resale homes, but they also offer better energy efficiency, fewer maintenance issues, and modern layouts. With this rebate, new homes become a much more viable option for first-time buyers.
Plus, it’s a long-term investment. Getting into a brand-new home not only gives you a fresh start, it also means fewer surprise repair costs down the road, a builder’s warranty, and the chance to build equity right away.
Conclusion:
This new GST rebate is a smart, well-timed incentive that lowers the barrier to homeownership and encourages more people to consider new builds, whether you're buying from a builder, building your own, or joining a co-op. If you're a first-time home buyer ready to take the leap, this could be your moment.
Want to know how much you could save? Let’s crunch the numbers together or talk through whether a new build is the right move for you. This opportunity could mean the difference between waiting and finally owning your first home.
