UNDERSTANDING THE FIRST-TIME HOME BUYERS GST REBATE

A new federal rebate is making it easier for first-time buyers to step into homeownership. The First-Time Home Buyers GST Rebate, introduced by the Government of Canada, offers up to $50,000 back on newly built homes that meet specific eligibility criteria.

Whether you're exploring quick possession options or looking to build from the ground up, here's what you need to know.

How the Rebate Works

When you buy a newly built home in Canada, the federal 5% Goods and Services Tax (GST) applies to the purchase price. This rebate refunds some or all of that tax for qualifying first-time buyers.

• 100% rebate for homes priced at $1 million or less

• Partial rebate for homes priced between $1 millions and $1.5 million

• No rebate for homes priced above $1.5 million

The maximum rebate is $50,000.

Who's Eligible?

To qualify for the rebate, both the buyer and the property must meet the program's requirements.

Buyer Criteria:

• Canadian citizen or permanent resident

• 18 years of age or older

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

• Purchasing the home as your primary residence

• First occupant of the home

This rebate can be claimed only once per household.

Property Criteria:

• Newly constructed and unoccupied

• Purchased from a builder, custom-built on land you own or lease, or a new unit in a housing co-operative

• Resale homes do not qualify

Qualifying property types include detached homes, townhomes, duplexes, condominiums, and co-op units, provided they are new and unoccupied at the time of sale.

Timing Requirements

To be eligible, your home purchase must meet the following federal timelines:

• Purchase agreement signed on or after May 27, 2025

• Construction begins before January 1, 2031

• Home is substantially completed before December 31, 2035

These deadlines apply nationwide and are part of the proposed legislation currently under federal review.

What the Rebate Can Do For You?

While you still need to qualify for the full purchase price, including GST, this rebate can provide real relief after possession. This rebate might help cover appliances, landscaping, blinds, moving costs, or simply allow for more flexibility in your budget.

Talk to Us

If you're a first-time buyer exploring newly built homes, we're here to help you understand what qualifies and how to make the most of this program. Contact our team to learn more about available models and quick possessions.