|
First-time buyers now have one more reason to consider a new build. The federal government has announced a new GST rebate that could save eligible buyers up to $50,000 on homes valued up to $1.5 million.
Introduced by Finance Minister François-Philippe Champagne on May 27, the First-Time Home Buyers' GST Rebate is designed to help lower the upfront cost of homeownership and encourage new housing construction. It’s estimated to deliver $3.9 billion in tax savings to Canadians over five years.
What it offers:
- A full 5% GST rebate on new homes up to $1 million.
- A partial rebate for homes priced between $1 million and $1.5 million. For example, a $1.25M home would be eligible for a 50% rebate.
- No rebate applies to homes priced at or above $1.5 million.
Who qualifies:
To be eligible, at least one purchaser must be a first-time home buyer who:
- Is 18 or older,
- Is a Canadian citizen or permanent resident,
- Hasn't owned a home (or lived in one owned by a spouse/partner) in the current year or past four years,
- Will use the property as their primary residence.
Applies to:
- New homes purchased from a builder (including those on leased land),
- Owner-built homes,
- Shares in a co-op housing corporation (excluding purpose-built rental units).
Important dates:
- Applies to agreements signed on or after May 27, 2025, and before 2031.
- Construction must begin before 2031 and be substantially complete by 2036.
The rebate cannot be claimed more than once per person or by someone whose spouse has already claimed it. Assignment sales and restructured contracts from before May 27 may also be ineligible.
If you’re a first-time buyer considering new construction -- or building themselves -- this rebate could make a substantial difference in affordability.
|