Thinking about buying your first home in Canada? Big news — the government is introducing a new GST/HST rebate for first-time home buyers that could save you up to $50,000 or more! Let’s break down who qualifies, how much you could save, and how this new rebate works starting in mid-2025.”
What Is This New Rebate?
“Starting with purchase agreements signed on or after May 27, 2025, the federal government will offer a full rebate of the 5% GST portion of the HST on newly constructed homes — but only for first-time buyers.“
This is in addition to the existing new housing rebate, and it stacks with any provincial rebates too.
Key Eligibility Rules
To qualify, you must:
- Be a first-time home buyer — that means you and your spouse or partner haven’t owned and lived in a home in the last 4 calendar years.
- Buy a newly built home, condo, or a substantially renovated home.
- Live in the home as your primary residence within 1 year of taking possession.
- Have a purchase and sale agreement dated on or after May 27, 2025.
How Much Money Can You Save?]
Let’s look at the numbers.
- For homes up to $1 million, you’ll get a full rebate of the 5% GST.
👉 That’s up to $50,000 in savings on a $1 million home. - For homes between $1 million and $1.5 million, the rebate phases out gradually.
- For homes $1.5 million or more, no rebate is available.
📍 Some provinces — like Ontario — are also planning to rebate the provincial 8% portion of HST. That’s an extra $80,000 in savings for some buyers, for a total of up to $130,000 saved.
How This Differs From Existing Rebates “Under the existing GST/HST rebate rules, you don’t need to be a first-time buyer — the main requirement was living in the home.”
But for this new enhanced rebate, first-time buyer status is required. This new program is designed to directly help new buyers enter the housing market.
How to Apply
Most builders will include the rebate in the purchase price — that means less money needed at closing. But if not, you’ll need to apply directly through the CRA using their rebate forms after possession.
📝 Forms include:
- Federal Form GST190 for the existing rebate
- New form (coming soon) for the enhanced first-time rebate
Final Tips
💬 “Remember — this rebate starts with homes purchased after May 27, 2025, so if you’re thinking about buying a new home, timing matters.”
And as always — talk to a tax professional if you need help with your specific situation!
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Innes Robinson Chartered Accountants 