What Is the First-Time Home Buyers’ GST Rebate?
The First-Time Home Buyers’ GST Rebate (FTHB GST Rebate) is a new federal measure that eliminates or reduces the Goods and Services Tax (GST) on newly constructed homes for qualifying first-time buyers. This rebate is part of the government’s broader housing affordability strategy and is expected to deliver $3.9 billion in tax savings to Canadians over five years, starting in 2025-26.
Key Highlights of the Rebate:
100% GST Rebate on New Homes up to $1 Million
First-time home buyers will receive a full rebate of the federal GST on homes valued up to $1 million—a potential savings of up to $50,000.
Scaled Rebate for Homes Between $1M and $1.5M
The rebate gradually decreases for homes priced between $1 million and $1.5 million. For example, a $1.25 million home would qualify for a 50% rebate, or up to $25,000 back.
No Rebate for Homes Over $1.5 Million
Homes priced at $1.5 million or more do not qualify under this new rebate.
Who Qualifies?
To be eligible, you must meet all the following criteria:
Be at least 18 years old
Be a Canadian citizen or permanent resident
Not have owned (or lived in a home owned by you or your spouse) in the current or previous four calendar years
Intend to use the new home as your primary residence
What Types of Homes Qualify?
The rebate applies to:
Newly built homes purchased from a builder
Owner-built homes, including those constructed by hiring contractors on owned or leased land
Shares in co-operative housing corporations (co-ops)
At least one purchaser must be a qualifying first-time home buyer, and they must be the first occupant of the home.
Important Dates to Know
To benefit from this rebate:
Purchase agreements must be signed on or after May 27, 2025, and before 2031
Construction must begin before 2031 and be substantially completed before 2036
Additional Rules and Limitations
You can only claim the rebate once in your lifetime.
Your spouse or partner must not have claimed the rebate previously.
You cannot qualify if the original agreement of purchase and sale was signed before May 27, 2025—even if it’s reassigned or altered later.
What This Means for First-Time Buyers
This is a major financial incentive for those entering the housing market. In today’s competitive real estate environment, up to $50,000 in tax savings can make a meaningful difference—whether it helps increase your budget or reduce upfront costs.
Not only does this rebate provide direct support to buyers, but it’s also designed to stimulate construction, increasing housing supply across the country.
As a licensed realtor with deep market knowledge, I can confidently say this rebate will open doors for many prospective buyers. If you’re considering buying a new home for the first time, this is the perfect time to start exploring your options. Let’s make sure you’re not only eligible but also positioned to take full advantage of these savings.
Let’s Talk About Your First Home.
If you're a first-time buyer and curious about your options under this new rebate program, get in touch. I’m here to help you navigate the process from start to finish—with clarity, confidence, and care.
for a personalized consultation.
Your path to homeownership just became more affordable—and I’m here to help you make the most of it.
For more detailed information on the FTHB GST Rebate, please refer to the official announcement by the Department of Finance Canada: Canada.ca