Canada’s housing affordability is getting a major boost. With the introduction of the new GST rebate for first-time home buyers, eligible Canadians could save up to $50,000 when purchasing a newly built home. This initiative is designed to make homeownership more attainable and stimulate housing construction across the country.
See official government policy details
What’s the New GST Rebate for First-Time Home Buyers?
Launched on May 27, 2025, the new GST rebate for first-time home buyers allows eligible individuals to recover GST paid on:
- New homes purchased from a builder
- Homes they build (or hire someone to build)
- Shares in a co-operative housing corporation
| Home Price | GST Rebate % | Max Savings |
|---|---|---|
| Up to $1 million | 100% | Up to $50,000 |
| $1M – $1.5M | Partial | Up to $25,000 |
| Over $1.5M | 0% | $0 |
Example: A home priced at $1.25 million gets a 50% GST rebate = $25,000.
Who Qualifies?
- 18 years or older
- Canadian citizen or permanent resident
- Not have owned or lived in a home owned by you or your spouse/common-law partner in the last four years
- Use the home as your primary residence
- First to live in the home
What Types of Homes Qualify?
- New builds from builders
- Self-built homes or homes built on your land
- Co-op housing units (if the co-op pays GST)
Key Timelines
| Requirement | Deadline |
|---|---|
| Purchase agreement signed | May 27, 2025 – Dec 31, 2030 |
| Construction starts | Before Jan 1, 2031 |
| Home substantially completed | Before Dec 31, 2035 |
Stack Your Rebates
This rebate can be combined with the existing GST/HST New Housing Rebate, helping you maximize your total savings.
Key Restrictions
- One-time use only
- Ineligible if your spouse/partner has claimed it
- Contracts signed before May 27, 2025 are not eligible
Final Thoughts
The new GST rebate for first-time home buyers is a powerful financial tool for Canadians entering the housing market. Don’t miss this opportunity to reduce your upfront home buying costs. For more, see the official announcement.
