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

Thinking about buying your first home in Canada? As of May 27, 2025, the federal government has introduced a major new incentive—the First-Time Home Buyers’ GST Rebate (FTHB GST Rebate). This program could save you up to $50,000 on a new home purchase.

Here’s everything you need to know.

What the Rebate Offers

This rebate is a game-changing move to make homeownership more affordable for young Canadians. Here's how it works:

• Full GST Rebate: For new homes priced up to $1 million, first-time buyers are eligible for a 100% rebate on the GST paid—up to $50,000 in savings.

  
  

• Partial Rebate: For homes priced between $1 million and $1.5 million, the rebate is reduced on a sliding scale. For example, a $1.25 million home would qualify for a 50% rebate.

  
  

• No Rebate: Homes priced at $1.5 million or more are not eligible.

💰 Estimated impact: This program is expected to provide $3.9 billion in tax relief between 2025 and 2030.

Who Qualifies?

To be eligible for the rebate, you must meet all of the following criteria:

• You are a first-time home buyer (haven’t owned a home in the current or past four years)

• You are at least 18 years old

• You are a Canadian citizen or permanent resident

• You are buying the home as your primary residence

• You are the first occupant of the home

  
  

What Types of Homes Are Covered?

The rebate applies to more than just newly built houses from a builder. Eligible properties include:

• New homes purchased from a builder

• Owner-built homes, including those built by hiring contractors

• Shares in a co-operative housing corporation (co-op)

  
  

Key Timelines

To qualify for the rebate:

• 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

  
  

⚠️ Important Limitations

• The rebate can be claimed only once per individual

• If your spouse or partner has claimed it before, you are not eligible

• Assignment sales do not qualify if the original agreement was signed before May 27, 2025

• Altering agreements to falsely appear eligible will invalidate the rebate

  
  

💬 Why This Matters

Buying a home is a major milestone—and an expensive one. This rebate provides meaningful financial relief for first-time buyers trying to break into the housing market.

It also encourages the purchase of newly built homes, which supports the construction industry and helps boost Canada’s overall housing supply—addressing one of the country’s most urgent challenges.

Final Thoughts

If you're a first-time home buyer in Canada, this rebate could be a once-in-a-lifetime opportunity. With up to $50,000 in tax savings, it might make the difference between dreaming of a home—and owning one.

Ready to take the next step? Speak with a mortgage advisor or visit the federal government’s website to learn how to apply.