There’s an important new federal incentive that could make buying a newly built home more affordable for first-time buyers in Canada.
The Canadian federal First-Time Home Buyers GST/HST rebate applies to qualifying purchase agreements signed on or after May 27, 2025, and offers a full or partial refund of up to $50,000 on the GST or the federal portion of the HST paid on a new home.
Here’s what you need to know about the first-time home buyer rebate:
Eligible properties: This applies to newly constructed homes and substantially renovated homes.
Maximum rebate: Eligible buyers may receive up to $50,000 back.
Home price thresholds: 100% rebate on homes priced up to $1 million or partial rebate on homes priced between $1 million and $1.5 million
Occupancy requirement: The buyer must be the first person to occupy the home, and it must be used as their primary residence.
Program timeline: Purchase agreements must be entered into between May 27, 2025, and 2031. Construction must be substantially completed by 2036
Who qualifies? To be eligible for the first-time home buyer rebate, you must:
- Be a first-time home buyer
- Intend to use the home as your primary residence
- Not have previously received this specific First-Time Home Buyers GST/HST rebate
- Meet the program requirements for either a builder-purchased or owner-built home
If you’re wondering how this first-time home buyer rebate could apply to your purchase plans, reply to this email and I’d be happy to help.
