What is the New Homes GST Rebate and am I eligible?
by Reid Boles, Realtor | June 6, 2025Did you hear about the new GST rebate for first-time buyers and have questions? Here’s a look at who’s eligible and what to know. Just keep in mind, this is a rebate, so the GST will still show up on your builder’s contract. The rebate comes afterwards.
Who’s Eligible for the Rebate? To qualify for the First-Time Home Buyers’ GST Rebate, you must meet key criteria:
First-Time Home Buyer – This means you or your spouse/common-law partner haven’t owned a home (either in Canada or internationally) in the last four years.
Age and Citizenship – You need to be at least 18 years old and either a Canadian citizen or permanent resident.
The home must be brand new – You can have a builder construct it for you, or build it yourself.
The home must be your primary residence.
How Much Can You Save?
Homes up to $1 million – You get 100% of the GST back, which is 5% of the total price. The rebate works out to be $25,000 on a $500,000 build, $47,500 on a $950,000 build, etc.
Homes between $1 million and up to $1.5 million – The rebate is returned on a sliding scale. For example, if the home is worth $1.25 million, you’d get a $25,000 rebate.
Homes at or over $1.5 million – No rebate.
Important Dates to Keep in Mind
Agreements for the purchase of a new home must be entered into on or after May 27, 2025 and before 2031.
The home must be completed before 2036.
Limitations You Need to Know About: A few rules will limit who can claim this rebate:
You can’t claim the rebate more than once in your lifetime and only once per couple. If you or your spouse/common-law partner has already claimed it, you can’t claim it again.
If you sign a new agreement for a home after cancelling the original agreement (or if you make changes to it), you are not eligible for the rebate.
Just a quick note: This information is based on proposed legislative changes and isn't final as of June 6, 2025. We are still waiting for details about how its going to be implemented. Once we know more we will provide another update.
For the most up-to-date details, it’s always best to check the Government of Canada website or speak with a professional (lawyer or mortgage brokers) who can provide guidance.
This can be confusing to understand, I get that! Give me a call at 204-799-3951 with any questions or to learn more about the home building process.