GST Relief for First-Time Home Buyers: What You Need to Know

The Canadian government has rolled out a major initiative to help first-time buyers step into homeownership: the First-Time Home Buyers’ GST Rebate (FTHB GST Rebate). This move aims to ease the financial pressure of buying a new home and boost construction across the country.

What Is the FTHB GST Rebate?

As of May 27, 2025, qualifying first-time home buyers are eligible for:

• 100% GST rebate on new homes priced up to $1 million.
• Partial rebate for homes between $1 million and $1.5 million (e.g., a $1.25M home gets a 50% rebate).
• No rebate for homes priced over $1.5 million.

In total, this rebate is expected to return $3.9 billion in tax relief to Canadians over the next five years.

Who Is Eligible?

To qualify for the FTHB GST Rebate, you must:

• Be at least 18 years old and a Canadian citizen or permanent resident.
• Be a first-time home buyer (not owned/lived in a home owned by you or your spouse in the past four calendar years).
• Use the property as your primary residence.

What Kinds of Homes Qualify?

This rebate applies to different types of home purchases and construction:

• Buying a new home from a builder, including on leased land.
• Building your own home or hiring a contractor to build on land you own or lease.
• Buying shares in a co-operative housing corporation (giving you rights to a unit).

Timeline to Qualify

• The purchase agreement must be signed between May 27, 2025, and December 31, 2030.
• Construction must be substantially completed by December 31, 2035.

Stack Your Savings

The FTHB GST Rebate can be combined with other federal incentives to maximise affordability:

• Home Buyers’ Plan (HBP) – Withdraw up to $60,000 from your RRSP for a home purchase.
• 30-year insured amortisations – Lower monthly payments for new home purchases by first-time buyers.

Why This Matters

For me, anything that removes financial hurdles for first-time home buyers is a win, not just for individuals, but for the broader market. Lowering the GST burden makes ownership more accessible and encourages developers to keep building. If you’re buying your first home, this program could significantly impact your budget and buying power.

Need Expert Guidance?

Want to know how this fits into your strategy as a first-time buyer? Let’s talk. At PLACE Real Estate Team – Oakwyn Realty, we’ll walk you through every option available and make sure you’re maximizing all benefits like this GST rebate.

– Adam Chahl | PLACE Real Estate Team – Oakwyn Realty

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Sources

• Government of Canada Announcement