Effective May 27, 2025, the First-Time Home Buyers’ GST Rebate (FTHB GST Rebate) allows eligible individuals to recover up to 100% of the GST (or the federal portion of the HST) paid on new homes valued up to $1 million. This translates to potential savings of up to $50,000.

✅ Who Qualifies?

To be eligible for the FTHB GST Rebate, you must:

• Be at least 18 years old

• Be a Canadian citizen or permanent resident

• Not have owned a home, or lived in a home owned by your spouse or common-law partner, in the current or previous four calendar years

• Intend to use the new home as your primary place of residence

• Be the first occupant of the home

🏗️ What Types of Homes Are Eligible?

The rebate applies to:

• New homes purchased from a builder

• Owner-built homes, including those where you hire a contractor to build on land you own or lease

• Shares in a cooperative housing corporation that provide the right to inhabit a new housing unit

📅 Important Timelines

To qualify for the rebate:

• The agreement of purchase and sale must be entered into on or after May 27, 2025, and before 2031

• Construction of the home must begin before 2031 and be substantially completed before 2036

⚠️ Limitations to Note

• The rebate can be claimed only once per individual

• If your spouse or common-law partner has previously claimed the rebate, you are not eligible

• Assignment sales (where you take over a purchase agreement from another buyer) are not eligible if the original agreement was signed before May 27, 2025

• If a purchase agreement signed before May 27, 2025, is cancelled and replaced with a new agreement after that date, the rebate may be disallowed

💡 Why This Matters

This initiative is part of the federal government's efforts to make homeownership more accessible and to stimulate the construction of new housing across Canada. By reducing the financial burden on first-time buyers, the FTHB GST Rebate aims to help more Canadians achieve their dream of owning a home.

If you're considering purchasing a new home and want to understand how this rebate could benefit you, feel free to reach out. I'm here to help you navigate the home buying process and take full advantage of available incentives.