New GST Rebate for First-Time home Buyers - Big Savings on New Homes Up to $1.5M

On Tuesday May 27, 2025, the federal government announced the First-Time Home Buyer (FTHB) GST Rebate, potentially saving buyers up to $50,000 on the purchase or construction of a new home. This program will increase affordability, ultimately creating new opportunities for mortgage qualification and financing strategies.

Rebate Highlights:

  • 100% GST rebate on new homes valued up to $1 million.

  • Partial rebate for homes priced between $1 million and $1.5 million (e.g., 50% rebate on a $1.25M home).

  • No rebate for homes over $1.5 million.

Applies to:

  • New homes bought from builders

  • Owner-built homes

  • Shares in co-op housing (where GST/HST applies)

Important Timelines:

  • Purchase/Build Contracts: Must be signed on or after May 27, 2025, and before 2031

  • Construction Completion: Must be substantially complete by 2036

Conditions:

  • The rebate can only be used once per lifetime

  • Spouses/partners of previous claimants cannot reapply

  • The rebate is not available for homes under contracts signed before May 27, 2025, including assignments of those contracts

What this means for:

Buyers: This rebate can significantly lower the cost of a new home and reduce the amount of mortgage required-helping you qualify more easily and save long-term.

Realtors and Builders: This change is expected to boost demand for new builds, especially in the $750K–$1.5M range.

Read the Government of Canada’s full article here

Need help navigating the rebate or qualifying for a mortgage? We specialize in working with first-time buyers, builders, and real estate professionals.

Contact us today to find out how this new program can help you or your clients take the next step toward homeownership.

MMG