If you’re a first-time home buyer in Canada, there’s a major new incentive that could make your path to homeownership a lot more affordable. As of May 27, 2025, the federal government has introduced a GST rebate aimed at helping first-time buyers purchase newly built homes.

Here’s the breakdown: If you’re buying a brand-new home priced at $1 million or less, you’ll now be eligible for a full rebate on the 5% federal GST — which could mean savings of up to $50,000. Homes priced between $1 million and $1.5 million will still qualify, but the rebate amount will be gradually reduced the closer the price gets to that $1.5 million mark. Anything above $1.5 million won’t be eligible.

To qualify, buyers must be Canadian citizens or permanent residents, at least 18 years old, and purchasing a home they plan to use as their primary residence. You’ll also need to be a true first-time buyer — meaning you haven’t owned (or lived in) a home you or your partner owned in the past four years.

This rebate applies whether you’re buying directly from a builder, constructing a home on your own lot, or purchasing through a co-op.

The offer is available for homes purchased on or after May 27, 2025, with construction starting before 2031 and substantial completion before 2036.

This GST rebate initiative is a significant step toward making homeownership more accessible for first-time buyers in Canada. By reducing the financial barriers associated with purchasing a new home, the government aims to support Canadians in achieving their homeownership goals.