🏡 Hey future homeowners! If you're buying your very first brand-new home in Canada, you're in luck—thanks to a brand new tax break that could put up to $50,000 back in your pocket.
🗓️ What just changed?
On May 27, 2025, the Canadian government introduced a first-time home buyer GST rebate. Here’s how it works: if your home purchase agreement is signed on or after that day (and before 2031), and construction is completed by 2036, you can get 100% of the federal 5% GST refunded—up to $50K—for homes valued at $1 million or less.
Homes priced between $1 M and $1.5 M still qualify—but the rebate slowly decreases. Above $1.5 M? Unfortunately, no rebate.
âś… Who can apply?
To be eligible, you need to:
- Be 18+, and a Canadian citizen or permanent resident
- Be a first-time home buyer — meaning you (or your spouse/common-law partner) haven’t owned a home in the past 4 years or the current oneÂ
- Buy a new home—whether from a builder, owner-built, or as a co-op—as your main residence.
💡 Why it’s a game-changer
Imagine saving $50,000 upfront—on a $1M purchase that’s like wiping out that extra chunk of mortgage or upgrading your flooring. For a $1.25M home, you’re still saving about $12,500, since the rebate phases out
🛠️ What to do next
- Chat with your realtor or builder to lock in a purchase agreement after May 27, 2025.
- Confirm you’re eligible—no house ownership in the past 4 years.
- Check if your builder can assign the rebate directly, or you'll apply through CRA.
Summary
- Up to $50K back on new homes ≤ $1M
- Partial relief between $1M–$1.5M
- Purchase agreement must be May 27, 2025 – before 2031
- Build completed by 2036
💬 Want help figuring out if this benefit fits your dream home plans? Drop me a message or give me a call—let’s make your first home purchase smooth, affordable, and fun!
Disclaimer: Always check with your tax advisor or CRA for personal circumstances.
