GST Relief for First-Time Home Buyers on New Homes Valued Up to $1.5 Million: What You Need to Know

What is the First-Time Home Buyers’ GST Rebate?

The FTHB GST Rebate eliminates or reduces the Goods and Services Tax (GST) on new homes for first-time home buyers. Specifically, the rebate offers:

• 100% GST rebate on new homes valued up to $1 million

• A partial GST rebate on new homes valued between $1 million and $1.5 million, phased out linearly

• No rebate available for homes valued above $1.5 million

This rebate allows first-time buyers to save up to $50,000 on GST, which can be a substantial help when budgeting for your new home.

Who Qualifies as a First-Time Home Buyer?

To qualify for the FTHB GST Rebate, you must meet these conditions:

• Be at least 18 years old

• Be a Canadian citizen or permanent resident

• Not have owned a home — anywhere in Canada or abroad — in the current calendar year or the previous four calendar years

• Use the new home as your primary residence

• Be the first occupant of the home

This rebate targets genuine first-time buyers, ensuring the benefit helps those entering the housing market for the first time.

Eligible Properties for the GST Rebate

The rebate applies to the following types of new homes:

• New homes purchased from a builder (including on leased land) with purchase agreements signed after May 27, 2025

• Owner-built homes, where you build or hire someone to build a home on land you own or lease

• Shares of cooperative housing corporations (co-ops) where GST was paid on the new housing

For all these property types, the home must be substantially completed before 2036 to qualify for the rebate.

Important Conditions and Limitations

While the FTHB GST Rebate is generous, there are some important limitations to keep in mind:

• You can only claim this rebate once in your lifetime.

• If your spouse or common-law partner has already claimed it, you are not eligible.

• If you purchase a home through an assignment sale where the original purchase agreement was signed before May 27, 2025, you may not be eligible.

• Agreements signed before May 27, 2025, and subsequently canceled and re-signed will not qualify for the rebate.

These rules help ensure that the rebate supports new home buyers fairly and as intended.

How Much Can You Save?

The FTHB GST Rebate can save you up to $50,000 on GST, which translates to significant upfront savings. For example:

• On a $1 million home, you get a full rebate of the GST paid (up to $50,000)

• On a $1.25 million home, you could receive a 50% rebate (up to $25,000)

• No rebate is available for homes above $1.5 million

This new rebate can reduce your initial cost and help make that dream home more attainable.

Why This GST Relief Matters for First-Time Home Buyers in Canada

The First-Time Home Buyers’ GST Rebate aligns with the government’s commitment to making homeownership more accessible and affordable. It complements existing programs and reflects a broader effort to stimulate new home construction, supporting both buyers and the housing market.

If you are considering buying a new home for the first time, this rebate can significantly reduce the tax burden and make your purchase more financially feasible. It’s important to consult with your real estate professional and tax advisor to ensure you understand the application process and eligibility criteria.