On May 27, 2025, Canada’s Department of Finance unveiled a game-changing proposal aimed at first-time homebuyers: a First-Time Home Buyers’ (FTHB) GST Rebate targeting new homes valued up to $1.5 million
What Does This Mean for Buyers?
- Rebate on homes under $1 million: Save the full 5% GST—up to $50,000—on new construction homes, condos, co-ops, or owner-built houses under $1 million
- Gradual phase-out between $1 M–$1.5 M: The rebate decreases linearly in this range (e.g., a $1.25 M home yields a roughly $25,000 rebate)
- No rebate over $1.5 M: Homes priced at or above $1.5 million do not qualify
Who Qualifies?
To access this rebate, you must:
- Be a first-time buyer—someone who hasn’t owned a home (or whose partner hasn’t) in Canada or abroad for the current calendar year or the four previous ones
- Be 18 or older, and a Canadian citizen or permanent resident
- Purchase the new home as your primary residence, either from a builder, by building on land you own/lease, or via a co-operative housing share
Key Dates & Conditions
- Purchase agreements must be signed after May 26, 2025, and before January 1, 2031 .
- Construction and occupancy must begin before 2031 and be completed by January 1, 2036
- One-time claim: The rebate is a lifetime benefit, available only once per individual
- No retroactive benefit for contracts signed before May 27, 2025—even if amended later
In Conclusion
This new FTHB GST Rebate delivers meaningful savings—up to $50,000—for first-time buyers of new homes up to $1 million, with scaled relief up to $1.5 million. It supports buyers, boosts housing supply, and aligns with Canada’s housing affordability strategy. Whether you’re shopping for a new condominium in Edmonton or building your dream home, this could be a golden opportunity to reduce your tax burden and make homeownership more affordable.
