First-Time Buyer GST Rebate: What You Should Know
The federal government has announced a proposed GST rebate for first-time home buyers. It is not law yet, and nothing has changed on purchase agreements at this point. GST is still charged, and the current GST Housing Rebate remains in place.
Even so, the announcement has raised questions for many buyers who are trying to decide when to move forward and how this might affect their plans.
What has been announced so far
The proposed First-Time Home Buyer GST Rebate is intended to help reduce the amount of GST paid when purchasing a newly built home.
Based on the information shared to date:
• First-time buyers could recover up to $50,000 of GST on new homes priced at or below $1 million
• Homes priced between $1 million and $1.5 million would qualify for a reduced rebate
• The home must be purchased as a primary residence
• The agreement of purchase and sale must be signed on or after May 27, 2025 and before 2031
Buyer eligibility
This proposed rebate is intended for people buying their first home. To qualify, a buyer would need to meet all of the following:
• Be at least 18 years old
• Be a Canadian citizen or permanent resident
• Not have owned a home in the current calendar year or the previous four calendar years
• Purchase the home as their primary residence
• Only claim the rebate once in their lifetime
• Not have a spouse or common-law partner who previously claimed the rebate
Qualifying details
In addition to buyer eligibility, the following conditions would apply based on the information released so far:
• The agreement of purchase and sale must be signed on or after May 27, 2025 and before 2031
• Agreements signed before May 27, 2025 would not qualify, even if later changed or replaced with a new one
• GST continues to apply under the current rules
More clarity is expected as the federal government releases additional guidance.
Buying with parents or family members
Some first-time buyers purchase a home with help from a parent or family member.
In these situations, the first-time buyer may still qualify for the rebate, even if the co-purchaser does not. The rebate would apply only to the qualifying buyer. Additional details around shared ownership are expected as the program moves forward.
Why this matters
This proposed rebate reflects an effort to improve affordability for first-time buyers and support new home construction. While it is still pending legislation, understanding how it may work helps buyers plan with fewer unknowns and more confidence.
What you can do next
If you are thinking about your first home, our new home consultants can help you understand current pricing, existing rebates, and what is known so far about the proposed GST rebate.
Alberta
• Explore homes on our Alberta homepage
• Contact our Alberta team
Ontario
• Explore homes on our Ontario homepage
• Contact our Ontario team
This article reflects information shared by the Department of Finance Canada as of May 27, 2025. Program details may change as legislation moves forward. For the latest updates, we recommend reviewing the Government of Canada announcement.