Up to $50K in Savings: New GST Rebate for First-Time Canadian Home Buyers (2025)

If you’re a first-time home buyer in Canada, you may be eligible for a major new rebate that could save you up to $50,000 on your new home. On May 27, 2025, the federal government introduced the First-Time Home Buyers’ GST Rebate (FTHB GST Rebate)—a game-changing measure designed to make homeownership more affordable and accessible for young Canadians.

What the Rebate Offers

Full GST Rebate: For new homes priced up to $1 million, first-time buyers can receive a 100% rebate on GST paid—up to $50,000 in savings.
Partial Rebate: For homes priced between $1 million and $1.5 million, the rebate decreases linearly. For example, a $1.25 million home would qualify for a 50% rebate.
No Rebate: Homes priced $1.5 million or more are not eligible.

This initiative is expected to deliver $3.9 billion in tax relief between 2025 and 2030 and is part of a broader strategy to stimulate housing supply and affordability across Canada.

Who Qualifies?

You can apply for the rebate if:

You are a first-time home buyer (have not owned a home in the current or previous four years)
You are at least 18 years old
You are a Canadian citizen or permanent resident
You are using the property as your primary residence
You are the first person to occupy the home

Eligible Home Types

The rebate applies to:

New homes purchased from a builder
Owner-built homes, including hiring contractors
Shares in a cooperative housing corporation (co-op)

Key Timelines

To qualify:

The purchase or construction agreement must be signed on or after May 27, 2025, and before 2031
The home must be substantially completed by 2036

Limitations

The rebate is available only once per individual
If your spouse or partner has claimed it before, you’re not eligible
Assignment sales are not eligible if the original agreement was signed before May 27, 2025
Rebate claims are void if the purchase agreement is altered to appear eligible post-announcement

Why This Matters

Buying a home is a major financial step, and this rebate offers meaningful relief for young buyers trying to break into the market. With average home prices still high in many regions, this policy puts thousands of dollars back into buyers’ pockets—especially for those considering new builds, condos, or co-op units.

It also aligns with efforts to increase housing supply, offering a financial incentive to choose newly constructed homes, which in turn supports builders and developers.

Canada Housing Market