GST Exemption on New Homes in Canada: What First-Time Home Buyers Need to Know

As of May 27, 2025, first-time home buyers could save up to $50,000 on a new home thanks for the brand new GST rebate announced by the federal government.

A full GST rebate on new homes under $1 million, and a partial rebate on homes between $1 million and $1.5 million.

First time home buyers...If you’ve been waiting for a sign to enter the market… this may just be it!

Here’s what you need to know:
✅ Up to 100% GST rebate on homes under $1M
✅ Partial rebate on a purchase price between $1M and $1.5M. For example, under the linear phase-out, a home valued at $1.25 million would be eligible for a 50% GST rebate (a rebate of up to $25,000).
✅ Must sign purchase agreement on or after May 27, 2025

If you are a first-time home buyer, you may be eligible for the GST rebate if: 
✅ You buy a new home from a builder;
✅ You build, or hire someone else to build, a home on land they own or lease; or
✅ You buy shares of a co-operative housing corporation.

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.

To read the full press release and for more details, go here.

Ready to Take Advantage of the GST Exemption?
If you're a first-time home buyer you could be eligible to save thousands on the purchase of a brand-new home. Don’t miss out on this valuable opportunity!
Contact me today to find out if you qualify and to get expert guidance through every step of the home buying journey.