No GST for First Time Homebuyers buying Brand New

🏡 Major GST Break for First-Time Home Buyers: A Game Changer for Canadians

As of May 27, 2025, the Canadian government has introduced a significant incentive for first-time home buyers: a full rebate of the 5% Goods and Services Tax (GST) on new homes priced up to $1 million. For homes valued between $1 million and $1.5 million, the rebate is phased out linearly—for example, a home priced at $1.25 million would be eligible for a 50% GST rebate. You may be surprised that in this case the definition of a First time Home Buyer does not mean never having owned a home....

To be considered a “first-time home buyer” for the purposes of the FTHB GST Rebate, an individual would generally need to meet the following conditions:

be at least 18 years of age;
be either a Canadian citizen or a permanent resident of Canada; and
not have lived in a home, whether in or outside Canada, that they owned or that their spouse or common-law partner owned in the calendar year or in the four preceding calendar years.

Why This Matters:

Substantial Savings: This rebate can save first-time buyers up to $50,000, making homeownership more attainable.

Boost to New Home Construction: By incentivizing the purchase of new homes, this measure aims to stimulate the construction industry and increase housing supply across Canada.

Broader Eligibility: Unlike previous rebates limited to homes under $450,000, this new policy reflects current market realities, especially in high-cost areas.

Eligibility Highlights:

Must be a first-time home buyer (per the definition mentions above.

The home must be a new construction intended as the primary residence.

The agreement of purchase and sale must be entered into between May 27, 2025, and 2031, with construction beginning before 2031 and completion before 2036.

This initiative is a significant step toward making homeownership more accessible for Canadians, particularly in markets where affordability has been a longstanding challenge.

For more details on the rebate and how to apply, visit the official government announcement: (Canada.ca)