Exciting updates are here for Canadians dreaming of homeownership!
The federal government has just announced a new First-Time Home Buyers’ GST Rebate (FTHB GST Rebate) designed to make buying a first home more affordable — and to help spur the construction of much-needed housing across the country.
Here’s what you (or your clients, family, or friends) need to know:
💡 What’s Changing?
Starting May 27, 2025, first-time home buyers will no longer pay GST on new homes valued up to $1 million — and they’ll get partial GST relief on homes priced between $1 million and $1.5 million.
This could mean up to $50,000 in savings on a new home purchase. The government estimates this program will deliver $3.9 billion in tax relief over five years!
🏠Who’s Eligible?
To qualify, you must:
âś… Be at least 18 years old
âś… Be a Canadian citizen or permanent resident
✅ Have not owned (or lived in a spouse/common-law partner’s owned) home in Canada or abroad in the past four years
🛠️ What Types of Homes Qualify?
The rebate applies to:
New homes purchased from a builder (including on leased land)
Owner-built homes (if you’re building or hiring someone to build on your land)
Shares in a co-operative housing corporation (where the co-op paid GST on new housing)
đź“Š How Much Can You Save?
Homes up to $1 million → Full 100% GST rebate (up to $50,000 back)
Homes between $1 million–$1.5 million → Phased rebate (e.g., $1.25 million = ~50% rebate)
Homes $1.5 million+ → No rebate
⏰ Important Dates
The FTHB GST Rebate applies if:
Your purchase or construction agreement is signed on or after May 27, 2025 and before 2031
Construction starts before 2031 and is substantially completed before 2036
⚠️ A Few Key Rules
You can only claim this rebate once in your lifetime
Your spouse/common-law partner must also be a first-time home buyer (if applying jointly)
Assignment sales from agreements before May 27, 2025 are not eligible
🌟 Why This Matters
For young Canadians and families struggling to break into the market, this rebate could be a game-changer — lowering upfront costs and unlocking access to more housing options. It also gives a boost to developers, encouraging new housing supply across the country.
If you or someone you know is planning to buy or build a new home, now’s the time to start preparing.