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.
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.
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.
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.
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.
To be eligible for the FTHB GST Rebate, you must meet all of the following criteria:
This rebate is focused on encouraging new construction and applies to a variety of home types, including:
This includes condominiums, single-detached homes, semi-detached homes, and other forms of eligible residential construction.
Timing matters when it comes to qualifying:
To avoid disqualification, buyers must understand a few key limitations:
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.
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.
When moving to a colder climate, it's important to think beyond just packing your winter…
Home renovations can be an exciting way to improve your living space and increase your…
Buying your first home can feel overwhelming, especially when faced with the rising costs of…
Ontario Housing Market Gets More Affordable in 2025 with Lower Rates and Prices Introduction: A…
The Ultimate Home Sellers Guide 2025 Selling your home is a significant decision, and having…
The Canadian rental market experienced a notable shift in 2024, with average asking rents declining…
Welcome To FindlayRealEstate.ca | This website uses cookies.