New GST Rebate Offers Big Savings for First-Time Home Buyers in Canada

Buying your first home just got a lot more affordable.

On May 27, 2025, the Government of Canada unveiled a major boost for first-time home buyers by introducing a new GST rebate on new homes. The First-Time Home Buyers’ GST Rebate (FTHB GST Rebate) is designed to reduce the upfront cost of homeownership and spur new home construction across the country.

Here’s what you need to know:

If you're a first-time home buyer, you could save up to $50,000 in GST when purchasing a new home valued at $1 million or less. Homes priced between $1 million and $1.5 million will see a phased-out rebate, with no rebate available for homes above $1.5 million.

Eligible purchases include:

• Buying a new home from a builder

• Building your own home (or hiring someone to do it)

• Buying shares in a co-operative housing corporation

To qualify, you must:

• Be 18 or older

• Be a Canadian citizen or permanent resident

• Not have owned or lived in a home (yours or a partner's) in the current or past four years

The rebate applies to homes purchased or constructed under agreements signed on or after May 27, 2025, with construction starting before 2031 and finishing by 2036.

Key limitations include:

• You can only claim the rebate once in your lifetime

• Your spouse/common-law partner must not have claimed it before

• It doesn’t apply to agreements signed before May 27, 2025, even if reassigned

This measure is expected to deliver $3.9 billion in tax relief to Canadians over the next five years. For many young buyers, this could be the difference between continuing to rent and finally owning a home.

Want to know if you qualify or how to apply? Stay tuned for more details as legislation progresses—and get ready to save big on your first home.