GST Rebate for First-Time Home Buyers in Canada: Up to $50,000 in Savings Announced
The Government of Canada just made a major announcement that could make homeownership much more affordable for first-time buyers.
As of today, May 27, 2025, a new First-Time Home Buyers’ GST Rebate (FTHB GST Rebate) will help reduce the cost of buying a newly built home by up to $50,000.
Quick Summary:
- Full GST rebate on new homes up to $1 million
- Partial rebate on new homes between $1 million and $1.5 million
- Applies to new homes bought from a builder, owner-built homes, and co-op housing
- Available for agreements signed from May 27, 2025 until 2031
- Designed exclusively for first-time home buyers
- Could save Canadians $3.9 billion over five years
Here’s a quick breakdown of what you can save:
| Home Price | Rebate Amount | Maximum GST Savings |
|---|---|---|
| Up to $1,000,000 | 100% rebate | Up to $50,000 |
| $1M–$1.5M | Partial rebate (phased) | Up to $25,000 |
| $1.5M+ | No rebate | $0 |
Your Questions Answered: First-Time Home Buyers’ GST Rebate
Who qualifies for the FTHB GST Rebate?
You’re eligible if you:
- Are 18 years or older
- Are a Canadian citizen or permanent resident
- Haven’t owned or lived in a home you (or your spouse/common-law partner) owned in the current year or previous four years
What types of home purchases qualify?
You may qualify if you:
- Buy a new home from a builder
- Build a home on land you own or lease
- Purchase a share in a co-operative housing corporation (co-op)
In all cases, the home must be used as your primary residence, and you must be the first person to occupy it.
What are the important dates?
- The agreement of purchase and sale must be signed on or after May 27, 2025, and before 2031
- Construction must begin before 2031 and be substantially complete before 2036
Can I combine this with the existing GST/HST New Housing Rebate?
Yes. If you qualify for both programs, the rebates can work together to reduce your upfront costs.
Can I claim this rebate more than once?
No. You cannot claim this rebate more than once, and you are not eligible if:
- You or your spouse/common-law partner has already claimed it
- Your purchase agreement was signed before May 27, 2025
- You cancel and re-sign an agreement just to qualify under the new rules
What if I already bought — does my presale purchase qualify?
If your agreement of purchase and sale was signed before May 27, 2025, your presale does not qualify, even if the home has not yet been built or delivered. The eligibility is based strictly on the date of the signed agreement.
Additionally, if you attempt to cancel and re-sign the agreement to meet the deadline, the rebate will be disallowed.
Where Can I learn more about the GST New Housing Rebate?
Visit the Government of Canada website here >>
What This Means for You
Whether you're planning to buy a new condo or townhome in North or West Vancouver, build a custom home, or purchase in a co-op unit, this new rebate can significantly reduce your upfront costs—especially for homes under $1 million. It's a great time to start exploring your options.
Need Help Navigating Your First Home Purchase?
Let’s chat! We're here to help guide you through every step. Reach out today.