Buying your first home is an exciting milestone—but the costs can add up quickly. To help make homeownership more affordable, the federal government has introduced a new GST rebate designed specifically for first-time home buyers purchasing newly built homes.
This program can result in significant savings, with eligible buyers potentially recovering up to $50,000.00 in GST.
What Is the First-Time Home Buyer GST Rebate?
The First-Time Home Buyer GST Rebate allows eligible buyers to recover some or all of the 5% GST paid on the purchase of a newly built or substantially renovated home.
This may include:
- Newly built houses
- Substantially renovated homes
- Owner-built homes
To qualify, the home must be intended as your primary residence.
As a first-time home buyer, you may be eligible for the First-Time Home Buyer GST rebate in addition to the existing GST new housing rebate. Where both rebates apply, the First-Time Home Buyer GST rebate acts as a top up to the existing GST new housing rebate.
How Much Could You Save?
Your rebate depends on the purchase price of the home:
- Up to $1,000,000.00: You may receive a full rebate of the GST (up to $50,000.00).
- Between $1,000,000.00 and $1,500,000.00: The rebate is gradually reduced.
- Over $1,500,000.00: The rebate is not available.
For many buyers, this can mean tens of thousands of dollars in savings.
How it Works:
This will depend on the builder. Some builders may pay the total amount of your rebates, including the standard GST new housing rebate and the new First-Time Home Buyer GST rebate, directly to you or credit the amount of those rebates against the total amount payable for the house on closing, so that you do not have to apply to CRA directly and wait to receive your rebate, instead, you can benefit from those rebates on the closing date.
Other builders may require that you pay the GST on closing and apply for the rebates yourself. For this situation, you must pay the GST to the builder on closing and then complete a Form GST190 and submit the form to CRA to claim the GST rebate(s) available to you.
Who Qualifies?
While details may continue to evolve, you will generally need to meet the following criteria:
- You are a first-time home buyer (never owned a home or been a co-owner of a home)
- You are at least 18 years of age
- You are a Canadian Citizen or Permanent Resident
- You are purchasing a newly built home & you are the first individual to occupy the home
- The home will be your primary place of residence
- The purchase price falls within the program thresholds
- The purchase contract for the home was entered into on or after March 20, 2025, and before the year 2031
- Construction of the home will be substantially complete on or before the year 2036
Why This Matters
This rebate is intended to make it easier for first-time buyers to enter the housing market by reducing upfront costs. It may also make newly built homes more financially accessible compared to resale properties.
How We Can Help
GST rebates can be more complex than they first appear—especially when dealing with builder agreements, assignments, or multiple purchasers.
If you are buying your first home, we can help ensure you understand your eligibility, maximize any available rebates, and complete your purchase with confidence.
Please contact our office if you have questions about how this rebate may apply to your situation.