New Homebuyer Article - Blu Realty Sold Sign
May 28, 2025

New GST Rebate For First-Time Buyers

In a major move to support housing affordability, the Canadian government has introduced a new GST rebate specifically for first-time home buyers. Starting May 27th, 2025, eligible buyers can receive a rebate on the federal portion of the GST or HST for newly built homes, with potential savings of up to $50,000.

Full Rebates on Homes up to $1 Million

Under this new program, first-time buyers who purchase newly constructed homes priced at $1 million or less are entitled to a full rebate on the federal portion of the sales tax. This represents a substantial financial break that could ease the burden of homeownership, especially in Canada’s higher-priced markets.
To put that into perspective, imagine purchasing our brand new pre-sale at #121 – 1552 E 3rd Avenue in East Vancouver for $924,900. With the federal GST rate at 5%, the tax on that purchase would normally run you $46,245. But thanks to the new rebate, that full amount is coming back to you. Yes, all $46,245 of it!

That’s not just a tax break, that’s life-changing money. You could use it to furnish your entire home with brand-new furniture. Or maybe stash a chunk of it away for a rainy day, or an epic vacation once you’re settled in.

Either way, it’s not just about saving money, it’s about starting your homeownership journey with a massive financial head start.

Reduced Rebates on Homes Between $1 Million and $1.5 Million

For homes priced between $1 million and $1.5 million, the rebate is gradually reduced on a sliding scale. A home purchased for $1.25 million, for example, would qualify for a 50% rebate, or about $25,000. However, once the price reaches $1.5 million, the rebate is eliminated entirely.

Who Qualifies for the Rebate?

To be eligible, buyers must be Canadian citizens or permanent residents and at least 18 years old. They must not have owned or lived in a home owned by themselves or their spouse or common-law partner in the current or previous four calendar years. The property must also be intended as their primary residence. This is a one-time benefit, and if a spouse or partner has already used the rebate, the other cannot claim it.

Types of Homes That Qualify

The rebate applies to new homes purchased directly from builders, provided the agreement is signed between May 27th, 2025, and December 31st, 2030. Construction must begin before 2031 and be substantially completed by the end of 2035. It also applies to owner-built homes started within that timeline, as well as purchases of co-op housing shares where the GST or federal portion of HST has been paid.

Exclusions and Limitations

Certain transactions are excluded. For example, homes acquired through assignment sales are not eligible if the original agreement was signed before May 27th, 2025. Additionally, each individual may only claim the rebate once. If a spouse or partner has previously claimed it, the other party is ineligible.

Supporting Housing Affordability

This rebate is part of a broader federal effort to address Canada’s housing affordability challenges. By reducing the tax burden on first-time buyers, the government aims to make homeownership more attainable while encouraging the construction of new housing supply across the country.

Final Thoughts

The First-Time Home Buyers’ GST Rebate is a meaningful step in helping more Canadians enter the housing market. For those considering purchasing a new home in the coming years, the rebate offers significant savings—especially on homes priced under $1 million. To explore your eligibility and learn more about how to apply, visit the Government of Canada’s official website or speak with one of the members of our team.