Buying your first home just got a whole lot easier. The Canadian government is introducing a new GST rebate to help first-time home buyers save big—up to $50,000 on new homes! This move will also encourage more housing development across the country.
What’s Changing?
As of May 27, 2025, the government plans to roll out the First-Time Home Buyers’ GST Rebate (FTHB GST Rebate), offering:
- 100% GST rebate on new homes priced up to $1 million
- Partial rebate for homes between $1 million and $1.5 million (e.g., a $1.25M home gets a 50% rebate)
- No rebate for homes priced $1.5 million or more
This measure could save Canadian homebuyers $3.9 billion in taxes over the next five years.
Who Qualifies as a First-Time Home Buyer?
To be eligible, you must:
- Be 18 years or older
- Be a Canadian citizen or permanent resident
- Not have owned a home (or lived in a spouse’s owned home) in the current or past four calendar years
How the Rebate Works
Buying a New Home from a Builder
If you buy a new home directly from a builder, you can claim up to $50,000 in GST rebates—as long as the home will be your main residence and you are the first person to live there.
To qualify:
- The purchase agreement must be signed between May 27, 2025, and 2031
- Construction must begin before 2031 and finish before 2036
Building Your Own Home
If you’re building your own home (or hiring a contractor to do it), you’re also eligible for a rebate of up to $50,000 on the GST or federal portion of HST you pay for the build.
Same timeline applies:
- Start building between May 27, 2025, and 2031
- Finish construction by 2036
Buying a Share in a Housing Co-op
You can also claim the rebate if you buy a share in a co-op housing unit and plan to live there. Again, you must be the first resident, and the co-op must have paid GST/HST on the unit.
Timeline and value rules are the same as for homes bought from builders.
Important Limitations
- One-time only: You can only claim the FTHB GST Rebate once in your lifetime
- Spouse restrictions: If your spouse/common-law partner already claimed it, you can’t
- Agreement date matters: You won’t qualify if the original purchase agreement was signed before May 27, 2025
Final Thoughts
This new GST rebate could be a game-changer for young Canadians dreaming of owning their first home. Whether you’re buying from a builder, building your own place, or joining a co-op, the rebate can take a big bite out of your upfront costs.
Now is the time to plan your move—and your savings.
Source: Department of Finance Canada