First-Time Buyers Save Up to $50,000 with New GST Rebate in Canada
New GST rebate for first-time buyers in Canada could save up to $50,000. Find out who qualifies, how much you get, and why now — while the market is balanced.
In May 2025, the Canadian federal government introduced a new GST rebate specifically for first-time buyers. The goal is to make housing more affordable and boost access to new construction homes.
If you qualify, you could get back up to 5% of the purchase price on a new home — up to $50,000 in total savings.
This applies only to newly built homes (or major renovations) purchased as a primary residence.
Who Qualifies for the Rebate?
To be eligible, first-time buyers must meet the following conditions:
- You (and your spouse/partner) haven’t owned a home in the last 4 years
- You are a Canadian citizen or permanent resident
- You’re buying a newly built home, not resale
- The property must be your primary residence
- The agreement must be signed after May 27, 2025, and home completed by 2036
This also applies to:
- Owner-built homes
- Co-op housing purchases
How Much Can First-Time Buyers Save?
Here’s how the GST rebate applies depending on the home price:
| Home Price | GST Rebate |
|---|---|
| ≤ $1,000,000 | Full rebate (5% of price) |
| $1,000,000–$1,500,000 | Partial rebate (phased out) |
| ≥ $1,500,000 | Not eligible for rebate |
🔢 Examples:
$600,000 home → $30,000 rebate
$850,000 home → $42,500 rebate
$999,000 home → $49,950 rebate
$950,000 home → $47,500 rebate (applied at closing or refunded after)
Why Now Is the Right Time
The real estate market in many Canadian provinces, including Alberta and Ontario, is balancing out:
- More listings available
- High likelihood of price adjustment
- Builders are offering incentives
This rebate creates a limited-time window where buyers can get the best of both worlds: a tax break + strong negotiating power.
But as demand picks up, this advantage will fade.
Steps to Claim the Rebate
- Confirm Eligibility
Double-check your first-time buyer status and ensure your purchase qualifies. - Sign a New Agreement After May 27, 2025
Older contracts are not eligible. - Ask Your Builder About GST Credit at Closing
Many developers automatically apply the rebate as a price reduction. - Submit Required CRA Forms
You may need to file GST190 and related forms if not claimed through the builder. - Avoid Pre-Assigned or Pre-2025 Units
Assignments of previous contracts won’t qualify.
Why Is the GST Rebate Only Available on New Homes?
Although the program is often discussed in the context of first-time home buyers, the GST rebate actually depends not on who is buying — but on what they’re buying.
Here’s why:
- The 5% GST applies only to new homes purchased directly from a builder or developer.
- Resale properties are not subject to GST — so there is nothing to refund.
- Assignments (buying the right to a pre-construction unit from another buyer) are also not eligible.
That means even if you’re not a first-time buyer, you may still qualify for the rebate — as long as you’re buying a qualifying new home.
And if you are a first-time buyer, this program often aligns perfectly with your needs and budget.
Final Thoughts
For first-time buyers, this is a rare financial opportunity. You can save tens of thousands of dollars while the market is still calm and builders are motivated.
If you’ve been waiting to buy, now is the time to act — before prices shift and builder incentives fade.
Opportunities like this rarely come with both tax savings and buyer leverage at the same time.
Want help navigating the rebate or finding eligible homes?
Contact me — I’ll guide you through the process step by step.