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Canada’s New GST Rebate Program
NEW rebate could significantly reduce your purchase cost OF YOUR FIRST HOME
Canada’s New $50,000 GST Rebate for First-Time Home Buyers
The federal government has introduced legislation that could eliminate the 5% GST on qualifying newly built homes—
saving eligible first-time buyers up to $50,000.
For many first-time buyers, this change could make buying a newly built home significantly more affordable.
This table shows the purchase price of your new home and the estimated rebate based on the new federal plan. The new rebate is a major increase from the current federal new housing rebate, which is capped at $6,300. For homes priced between $1 million and $1.5 million, the rebate gradually phases out. Homes priced above $1.5 million would not qualify.
| Home Price | Estimated Rebate* |
|---|---|
| $700,000 | $35,000 |
| $800,000 | $40,000 |
| $900,000 | $45,000 |
| $1,000,000 | $50,000 |
| $1,250,000 | ~$25,000 |
Who Qualifies?
In most cases, the rebate is applied during the closing process. The typical process works like this:
Choose Home → Purchase Agreement → Closing → Rebate Applied
In many builder transactions, the rebate is assigned to the builder and credited at closing, which can reduce the amount buyers need to pay upfront. A Shane Homes Area Manager can help explain how the rebate may apply to your specific situation.
Buyer Requirements
Property Requirements
Eligible home types
Buyer Requirements
You may qualify if you:
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Are at least 18 years old
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Are a Canadian citizen or permanent resident
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Are considered a first-time home buyer
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Have not owned and lived in a home in the current year or the previous four calendar years
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Have not previously received the enhanced first-time GST rebate
Wanting to take the first step to owning your first home? Shane Homes is here to answer all your questions. Start a no pressure conversation with our sales team.
Property Requirements
The home must:
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Be newly constructed or substantially renovated
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Be used as your primary residence
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Not be purchased solely as an investment property
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Resale homes do not qualify for the enhanced rebate
Want to see if the home you are planning qualifies? Connect with our sales team!
Eligible home types
Eligible home types include:
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Detached homes
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Semi-detached homes
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Townhomes
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Condominiums
Need help deciding which homestyle is right for you? View our home models here!
Example Savings
Example savings:
| Home Price | GST | Potential Rebate |
|---|---|---|
| $650,000 | $32,500 | $32,500 |
| $750,000 | $37,500 | $37,500 |
| $900,000 | $45,000 | $45,000 |
Why This Rebate Matters for First-Time Buyers
At Shane Homes, we work with buyers every day to help them find homes that meet both their lifestyle and budget needs.
For many Canadians, the GST on a newly built home represents a significant cost.
This rebate could return tens of thousands of dollars to eligible buyers, which may help:
- Reduce the overall purchase price
- Lower the amount needed for closing
- Improve mortgage affordability
- Allow buyers to qualify for a larger home, more upgrades, or other communities
For many buyers in Alberta, where many homes fall below the $1 million threshold, this could mean receiving the full rebate amount.
Important Dates
The legislation introducing the enhanced GST rebate has passed several stages in Parliament and is expected to receive final approval soon.
Key timeline details include:
- Applies to purchase agreements signed after March 19, 2025
- Construction must begin before 2031
- Homes must be substantially completed before 2036
This means some buyers who purchased a new home after March 19, 2025 may already qualify once the program becomes law. Once finalized, the Canada Revenue Agency will release updated forms and procedures for claiming the rebate.
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Why choose Shane Homes
Buying your first home is a big decision, and understanding government incentives can be confusing.
At Shane Homes, our team helps buyers navigate the entire process. From exploring communities to understanding available rebates and programs. With decades of experience building homes in Alberta, Shane Homes is committed to helping first-time buyers feel confident every step of the way.
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Love It or Customize It
Shane Homes’ “Love It or Customize It” program lets you personalize your home’s design to suit your taste and lifestyle perfectly. Whether you’re looking to incorporate a dog wash, butler’s pantry, spice kitchen, or dual ensuites, this program allows you to customize your home to meet your everyday needs.
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Four decades of experience
With over 45 years of experience and 15,879 happy new home buyers, Shane Homes has built a reputation for building quality, reliable, and expertly crafted homes that meet the highest standards and new homeowners’ needs.
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Have a happy move!
With our MyHome Concierge by Virtuo App, you can stay on top of your to-do list, keep your documents in one place, connect with a dedicated concierge for any questions, and so much more!
Frequently Asked Questions
What Is a rebate?
A rebate is a refund of money that you would normally have to pay.
In the case of the federal GST rebate for new homes, buyers typically pay 5% Goods and Services Tax (GST) when purchasing a newly built home. A rebate allows eligible buyers to recover some or all of that tax after the purchase.
For example:
If a new home costs $700,000, the 5% GST would normally be $35,000.
If the buyer qualifies for the enhanced GST rebate, they could receive that $35,000 back, effectively eliminating the GST on the purchase.
Depending on how the purchase agreement is structured, the rebate may:
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be credited at closing by the builder, reducing the amount you pay upfront, or
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be claimed from the Canada Revenue Agency after closing
A Shane Homes advisor can help explain how the rebate would apply in your specific purchase scenario.
Is the rebate available right now?
The legislation has passed the Senate and is currently awaiting final approval by Parliament before receiving Royal Assent.
Does the rebate apply in Alberta?
Yes. The GST rebate is a federal program, meaning it applies across Canada.
Does the rebate apply to resale homes?
No. The rebate only applies to newly built or substantially renovated homes.
Can I qualify if I signed a purchase agreement in 2025?
Possibly. Agreements signed after March 19, 2025 may qualify once the legislation becomes law.
Do all new homes qualify?
Homes priced above $1.5 million will not qualify for the rebate.
