First-Time Home Buyer GST Rebate

Released May 27, 2025 –from the Department of Finance Canada

To help make housing more affordable and stimulate new home construction, the federal government has proposed a new First-Time Home Buyer GST Rebate (FTHB GST Rebate),

which provides GST relief—up to $50,000—on the purchase of new homes.

Who is eligible?

To qualify, you must:

  • Be a first-time home buyer (you haven’t lived in a home owned by you or your spouse/common-law partner in the current or past four calendar years);
  • Be 18 years or older;
  • Be a Canadian citizen or permanent resident.

What types of homes are eligible?

  • Buying a newly built home from a builder;
  • Building a new home on land you own or lease;
  • Buying shares in a co-operative housing corporation.

How much rebate can you receive and the net GST payable?

Home Price Rebate % GST Rebate Net GST Payable
$800,000 100% $40,000 $0
$1,000,000 100% $50,000
(max)		 $0
$1,100,000 80% $40,000 $15,000
$1,250,000 50% $25,000 $37,500
$1,400,000 20% $10,000 $60,000
$1,500,000 0% $0 $75,000

The rebate phases out linearly for homes priced between $1 million and $1.5 million.

This means the rebate is reduced by 2% (or $1,000) for every $10,000 increase in home price over $1,000,000.

Timeline requirements

  • The agreement of purchase and sale must be signed on or after May 27, 2025, and before 2031;
  • Construction must begin before 2031;
  • The home must be substantially completed before 2036.

Important notes & restrictions

  • The rebate can only be claimed once in a lifetime.
  • You cannot claim if your spouse or partner has already claimed it.
  • Homes purchased under agreements signed before May 27, 2025, including assignment sales, do not qualify.
  • Attempts to cancel and re-sign old agreements to qualify may disqualify you from the rebate.

Common Questions

Q1: My pre-sale agreement was signed in 2023, with completion later this year. Do I qualify?
A1: Unfortunately, no. Only purchase agreements signed on or after May 27, 2025 qualify.

Q2: Can I cancel and re-sign my agreement to qualify?
A2: No. Such actions may render you ineligible for the rebate.

Disclaimer

This program is a legislative proposal and has not yet been enacted into law. Details are subject to change. This is not investment or legal advice. Please consult with our office or your advisor before making any real estate decisions.

For more details:

https://www.canada.ca/en/department-finance/news/2025/05/gst-relief-for-first-time-home-buyers-on-new-homes-valued-up-to-15-million.html