Big GST Relief for First-Time Home Buyers in Canada – Here’s What You Need to Know

Thinking of buying your first home? If you're eyeing a brand-new place to call your own, there's good news from the federal government that could save you a lot of money—up to $50,000, in fact.

Let’s break down the new First-Time Home Buyers’ GST Rebate in plain English and help you figure out if you qualify and how much you could save.

What’s New?

Starting May 27, 2025, if you're a first-time home buyer in Canada, you can now get back some—or even all—of the GST (Goods and Services Tax) you pay on a new home purchase.

Here’s how it works -

Full GST rebate on new homes priced up to $1 million

Partial rebate on new homes priced between $1 million and $1.5 million

No rebate for homes priced above $1.5 million

This move is part of the government’s effort to make homeownership more affordable for Canadians and to encourage more new housing to be built.

What Does This Mean in Real Dollars?

Let’s say you’re buying a brand-new condo for $850,000. Normally, you’d pay 5% GST on top—that’s $42,500. With this new rebate, you get every dollar of that back.

Buying a home for $1.25 million? You’d still save half the GST, which is around $25,000. That’s a serious cut to your upfront costs.

Who’s Eligible?

To claim the FTHB GST Rebate, you need to check a few boxes -

✅ You’re at least 18 years old
✅ You’re a Canadian citizen or permanent resident
✅ You (and your spouse/partner) haven’t owned a home in Canada or abroad in the current year or past four years

Also, this must be your primary residence—no investment properties or vacation homes.

Where the Rebate Applies

The rebate covers three main situations -

1. Buying from a Builder

Buying a newly built home (on owned or leased land)? You're eligible—just make sure the agreement was signed on or after May 27, 2025, and construction starts before 2031.

2. Building Your Own Home

Planning to build your own house—or hire a builder? You can still get the rebate as long as construction starts between 2025 and 2031, and the home is substantially finished before 2036.

3. Buying a Share in a Housing Co-op

If you're buying into a cooperative housing unit (where you own a share instead of the actual home), the rebate applies here too—again, if it's your first home and you’re living there.

Important Notes & Limitations

This rebate is a one-time deal—you can’t claim it again later.

If your spouse or partner already used the rebate, you're no longer eligible.

If you’re taking over someone else's purchase agreement (a common thing in assignment sales), and the original deal was signed before May 27, 2025, you won’t qualify.

You can’t try to “reset the clock” by cancelling and re-signing a purchase agreement. The government’s ahead of that move.

Final Thoughts

The First-Time Home Buyers’ GST Rebate is a game-changer for young Canadians and families trying to break into the housing market. It’s a big financial break that could help more people own a home and free up cash for other important expenses like renovations, moving costs, or just furnishing your place.

So if you’re planning to buy a new home and you're eligible—don't miss this!

Have questions? Thinking about buying your first home soon? Reach out to us at thehomess.com—we’re here to guide you through the whole process, step-by-step.