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Buying your first home just got a little easier — and potentially a lot more affordable. On May 27, 2025, the federal government introduced a new GST rebate designed to help first-time homebuyers save thousands when purchasing a newly built home. With housing affordability continuing to challenge many Canadians, this new initiative offers a timely and valuable opportunity.
What’s the Rebate?
Eligible first-time buyers can now receive a full rebate of the 5% Goods and Services Tax (GST) on newly built homes priced up to $1 million. For homes priced between $1 million and $1.5 million, a partial rebate will still apply. That means potential savings of up to $50,000 — money that can go toward furnishing your new home, covering closing costs, or reducing your mortgage.
This is a major win for anyone looking to break into the housing market, particularly in high-cost areas where every dollar counts. It also makes purchasing a newly constructed home a more attractive and achievable option.
Who Qualifies?
To be eligible for this rebate, buyers must meet the following criteria:
Be a first-time homebuyer (no property ownership in the past four years)
Use the property as their primary residence
Be a Canadian citizen or permanent resident
Sign the purchase agreement on or after May 27, 2025
This rebate applies whether you're buying directly from a builder, building the home yourself, or purchasing through a co-op housing arrangement.
Why It Matters
This move comes at a critical time. With housing prices still high in many parts of the country and supply shortages ongoing, affordability remains a major hurdle. Fortunately, the Bank of Canada has just announced that it will hold its key interest rate steady at 2.75%, giving further breathing room to potential buyers.
Incentives like this GST rebate not only help individuals but also contribute to a healthier housing market. Encouraging the purchase of new homes can stimulate construction and expand supply — a crucial factor in easing long-term affordability pressures.
Final Thoughts
If you or someone you know is considering buying their first home, this rebate could be a game-changer. Buying property for the first time can feel overwhelming, but government support like this can make a real difference.
With up to $50,000 in savings available, there has never been a better time to explore your options and take the next step toward homeownership. Contact me as your experienced real estate specialist to discover your options and turn your homeownership dream into reality.
