The Canadian federal government has introduced a significant incentive for first-time home buyers: a new GST rebate on newly built homes, effective immediately. This initiative aims to make homeownership more affordable and stimulate new home construction across the country.
What Is the First-Time Home Buyers’ GST Rebate?
Announced on May 27, 2025, the First-Time Home Buyers’ GST Rebate (FTHB GST Rebate) offers substantial tax relief:
100% GST rebate on new homes priced up to $1 million, which can save buyers up to $50,000
Partial rebate for homes priced between $1 million and $1.5 million, reduced on a sliding scale
No rebate for homes priced at $1.5 million or more
This measure is expected to provide nearly $4 billion in tax savings to Canadians over the next five years.
Who Qualifies?
To be eligible for the FTHB GST Rebate, you must:
Be a first-time home buyer, meaning you haven’t owned a home in the current or previous four calendar years
Be at least 18 years old
Be a Canadian citizen or permanent resident
Intend to use the home as your primary residence
Be the first occupant of the home
Eligible properties include newly constructed homes from builders, owner-built homes, and some cooperative housing units.
Key Dates to Remember
Purchase agreements must be signed on or after May 27, 2025, and before 2031. Construction must begin before 2031 and be substantially completed by 2036.
What This Means for the Market
This rebate is expected to increase demand for newly built homes—especially among first-time buyers. That may lead to rising home prices as more buyers enter the market, which could impact inventory and affordability across all price points.
Even if you're not a first-time buyer, this policy will likely influence market trends, making it a great time to reassess your real estate plans.
Let’s Talk About Your Homeownership Goals
Navigating the market is easier when you have the right guidance. Whether you're planning to buy your first home, invest, or move up, I’m here to help you understand how this new rebate might fit into your strategy.
Feel free to reach out for a conversation. No pressure, just honest advice.
Contact Nooran Ostadeian
REALTOR®, RE/MAX Elite
Call or Text: 780-953-0723
Website: realtyedmonton.ca | nooranrealty.com
Office: RE/MAX Elite Windermere, 5083 Windermere Blvd SW #302, Edmonton, AB T6W 0J5
Email: nooran@realtyedmonton.ca