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

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

If you're a first-time home buyer in Canada, there's exciting news that could make owning your first home more affordable. As of May 2025, the federal government has introduced a game-changing incentive: a GST rebate program designed specifically for first-time buyers. This new rebate could save you tens of thousands of dollars on your new home purchase, while also boosting new housing construction nationwide.

🏡 Key Features of the New GST Rebate

✔ Full GST Rebate on Homes Up to $1 Million
First-time home buyers can now receive a full rebate on the 5% Goods and Services Tax (GST) for brand-new homes priced at $1 million or less. That translates to up to $50,000 in potential savings.

✔ Partial Rebate for Homes $1M to $1.5M
Homes priced between $1 million and $1.5 million will receive a scaled rebate. For example, if you're buying a $1.25 million home, you could get back 50% of the GST paid.

✖ No Rebate Over $1.5 Million
Homes above this threshold are not eligible for any GST rebate.

📄 Who Qualifies?

To be eligible, you must:

• Be at least 18 years old

• Be a Canadian citizen or permanent resident

• Have not owned or lived in a home you or your spouse/common-law partner owned in the past four years

• Intend to use the new home as your primary residence

🏢 What Types of Homes Qualify?

• Newly Built Homes from a builder (even on leased land)

• Owner-Built Homes, constructed on land you own or lease

• Co-Operative Housing, where you purchase shares that allow you to occupy a unit

⏰ Important Timelines

• Purchase Agreements must be signed between May 27, 2025, and December 31, 2030

• Construction must begin before 2031 and be substantially complete by December 31, 2035

💼 How This Impacts the Market

This initiative is expected to:

• Make buying a first home more financially accessible

• Drive demand for new housing

• Encourage more housing construction, helping address Canada's supply challenges

Whether you're actively looking to buy or just starting to plan for your future, this new GST rebate offers a substantial financial benefit and creates opportunities for more Canadians to become homeowners.

📞 Let’s Talk About Your Homeownership Goals

Thinking about buying your first home and want to take advantage of this rebate? Let’s connect and walk through your options.

Omeed Ghafori | Century 21 Coastal Realty
☎️ 778-316-7506
👉 www.OmeedGhafori.com
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