There’s been an exciting development for anyone thinking about buying their first home.
The federal government officially passed the GST rebated for first-time home buyers. This means that buyers who meet the criteria can eliminate the 5% federal GST on newly built homes up to $1 million and lower it on homes between $1 million and $1.5 million. This rebate applies to qualifying homebuyers who signed an agreement of purchase and sale with a builder between March 20, 2025 and 2031.
Real Numbers, Real Impact
Here is what a 5% savings looks like on a $550,000 home.
- Without the rebate, you’d be paying GST in full, adding $27,500 to the purchase price.
- With the rebate, that $27,500 is eliminated, leaving your total price at $550,000 instead of $577,500.
For a first-time buyer, that’s more than just a number on paper. It could mean:
- A lower down payment requirement
- Easier approval when qualifying with a lender
- Smaller monthly mortgage payments
- Making room in your budget for furnishing, savings, or other life goals.
How It Works
The rebate is applied directly to eligible new home purchases. The 5% GST is removed from the price at the time of purchase. This lowers your mortgage amount immediately and can help make qualification easier.
Who qualifies for the rebate?
- You must be at least 18 years old and a Canadian citizen or permanent resident
- Must be considered a first-time home buyer
- You have not owned or lived in a home that you or your spouse or common-law partner own, or jointly own as your primary place of residence at any time in the calendar year or in the previous four calendar years
What are the home type requirements?
- Newly constructed or substantially renovated
- Be used as your primary residence
- Not to be purchased solely as an investment property
- Resale homes do not qualify for the enhanced rebate
Next Steps
Connect with one of our trusted Mortgage Advisors to chat about your specific budget and visit one of our Welcome Centre’s to learn more about your options with one of our Area Managers.
We want you to feel informed and confident as you start looking at floorplans, communities, and timelines. The more you understand your options, the easier it is to make choices that feel right for you.
