Up to $50,000 in Savings: Canada Launches Major GST Rebate for First-Time Home Buyers (2025)
Up to $50,000 in Savings: Canada Launches Major GST Rebate for First-Time Home Buyers (2025)
A New Path to Homeownership Just Opened for First-Time Buyers Across Canada
In a bold move to tackle housing affordability and support young Canadians entering the real estate market, the federal government has officially launched the First-Time Home Buyers’ GST Rebate (FTHB GST Rebate)—a landmark incentive that could save eligible buyers up to $50,000 on the purchase of a newly constructed home.
Announced on May 27, 2025, this rebate is part of the government’s broader effort to address soaring housing costs, stimulate new housing supply, and help first-time buyers achieve the dream of homeownership.
💰 What the FTHB GST Rebate Offers
At the heart of this program is a substantial Goods and Services Tax (GST) rebate aimed at easing the upfront cost burden for first-time home buyers purchasing newly built properties.
🔹 Full GST Rebate — Homes Priced up to $1 Million
If you’re buying a newly built home valued at $1 million or less, you’re eligible for a 100% rebate on the GST portion of the home price. This translates to a potential savings of up to $50,000—money that can be reinvested into furnishings, renovations, or simply reduce your mortgage burden.
🔹 Partial GST Rebate — Homes from $1 Million to $1.5 Million
For properties priced between $1 million and $1.5 million, the rebate is reduced on a sliding scale. For example, a $1.25 million home would qualify for a 50% rebate, or up to $25,000 in savings.
❌ No Rebate — Homes Above $1.5 Million
Homes with a purchase price of $1.5 million or more are not eligible for the rebate.
This initiative is forecasted to deliver an estimated $3.9 billion in tax relief between 2025 and 2030, supporting thousands of first-time home buyers nationwide.
👥 Who Qualifies for the Rebate?
To be eligible for the FTHB GST Rebate, you must meet all of the following criteria:
- ✅ You are a first-time home buyer, meaning you haven’t owned a home in the current or previous four calendar years
- ✅ You are at least 18 years of age
- ✅ You are a Canadian citizen or permanent resident
- ✅ You intend to make the home your primary residence
- ✅ You are the first occupant of the newly built home
🏠 Which Properties Are Eligible?
This rebate is focused on encouraging new construction and applies to a variety of home types, including:
- ✅ Newly built homes purchased directly from a builder
- ✅ Owner-built homes, including those where contractors are hired
- ✅ Co-op housing purchases (e.g., shares in a housing cooperative)
This includes condominiums, single-detached homes, semi-detached homes, and other forms of eligible residential construction.
📅 Key Dates and Deadlines
Timing matters when it comes to qualifying:
- 🗓️ Agreements of purchase or construction must be signed on or after May 27, 2025, and before the end of 2030
- 🛠️ The home must be substantially completed by December 31, 2036
⚠️ Important Limitations to Note
To avoid disqualification, buyers must understand a few key limitations:
- 🔸 The rebate is available only once per individual
- 🔸 If your spouse or common-law partner has previously claimed the rebate, you are not eligible
- 🔸 Assignment sales (i.e., selling the right to purchase a property before taking possession) are not eligible if the original agreement was signed before May 27, 2025
- 🔸 Buyers cannot alter existing agreements post-announcement to make them appear eligible—doing so will void the rebate
🏡 Why This Matters for First-Time Buyers
For Canadians dreaming of homeownership, especially in cities like Toronto, Hamilton, or Vancouver where average home prices remain high, this rebate provides meaningful financial relief.
By covering the full GST on homes up to $1 million, the program can free up thousands of dollars that would otherwise be spent on taxes—giving young families and individuals a better financial foundation from the start.
This policy also incentivizes buyers to look at new builds, which helps stimulate new construction, create jobs in the trades, and support developers building much-needed housing stock.
✅ Final Thoughts: A Generational Boost Toward Homeownership
The First-Time Home Buyers’ GST Rebate is more than just a tax incentive—it’s a clear signal that the government is prioritizing housing accessibility for younger generations. Whether you’re eyeing a downtown condo, a new suburban townhouse, or planning to build your dream home, this rebate can make a major difference in affordability.
If you’re planning to buy your first home, this could be the perfect time to act. Speak to a licensed real estate agent or tax advisor to see how you can take full advantage of this opportunity.
For more information contact Realtor Sean Findlay for a free buyer’s consultation.