Big News for First-Time Buyers: New GST Rebate on Homes up to $1.5M

If you're a first-time home buyer in Canada, there's a major new incentive that could save you tens of thousands of dollars on your next move.

On May 27, 2025, the federal government announced a new GST rebate program specifically for first-time home buyers, aimed at lowering the upfront cost of purchasing a new home and encouraging more housing development across the country.

🏠 What Is the First-Time Home Buyers’ GST Rebate?

This new First-Time Home Buyers’ GST Rebate (FTHB GST Rebate) allows eligible buyers to recover up to 100% of the GST (or federal portion of HST) on new homes valued up to $1 million.

For homes priced between $1 million and $1.5 million, the rebate will be phased out linearly. That means:

• A $1.25 million home could qualify for a 50% rebate (up to $25,000 back)

• Homes priced $1.5 million or more are not eligible

The maximum rebate available is $50,000.

Who Qualifies?

To be eligible, you must:

• Be 18 or older

• Be a Canadian citizen or permanent resident

• Not have owned or lived in a home (yours or your partner’s) in the current year or the last 4 calendar years

• Purchase the home as your primary residence

• Be the first occupant of the property

  
  

What Types of Properties Are Covered?

The rebate applies if:

• You buy a new home from a builder

• You build a new home yourself (or hire a builder)

• You buy into a co-op housing corporation

It covers single-family homes, condos, and townhomes as long as it's new construction.

Important Dates

• Purchase Agreements: Must be signed on or after May 27, 2025

• Construction Start: Must begin before 2031

• Home Completion: Must be substantially completed before 2036

  
  

Why This Matters

In high-cost markets like the Lower Mainland area, the previous GST rebate phased out far too early for most first-time buyers to benefit. This new policy acknowledges current market realities by extending rebate eligibility up to $1.5 million, putting more buying power into the hands of first-time buyers.

Final Thoughts

Whether you're planning to buy a pre-sale condo or build your dream home from the ground up, this new rebate can provide a huge financial boost. With up to $50,000 in tax savings, it's one of the most impactful changes we've seen in years for first-time buyers.

If you're thinking about entering the market and want to make the most of this new rebate, reach out at 778-792-4226 I’d be happy to walk you through your options and help you find a qualifying home.