Big News for First-Time Buyers: GST Relief on New Homes Up to $1.5 Million
If you're a first-time home buyer in Canada, there's a major new incentive to help get you into a new home. As part of the federal government’s efforts to improve housing affordability, the GST on new homes will now be fully removed for qualifying first-time buyers purchasing homes valued at up to $1.5 million.
What’s Changing?
Previously, full GST rebates were only available on homes under $350,000, with a reduced rebate up to $450,000. Now, under the proposed changes:
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First-time buyers purchasing newly constructed homes will get a full GST rebate for homes valued up to $1.5 million.
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To qualify, the buyer must be a first-time home buyer, and the home must be their primary residence.
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This applies to eligible newly built homes, including condos, townhomes, and detached homes.
What This Means for Buyers
This change could save first-time buyers up to $75,000 (5% GST on a $1.5M home), making it significantly easier to afford a new home—especially in markets like B.C. and Ontario, where prices often exceed the old rebate thresholds.
This incentive is designed to:
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Improve affordability for younger and first-time buyers.
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Encourage the construction and purchase of new housing.
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Provide meaningful savings without impacting resale homes or investors.
When Does It Start?
This measure is part of new legislation proposed in May 2025. Implementation timelines will depend on the legislative process, but developers and buyers should begin preparing for it now.
Thinking of buying your first home? This new GST relief could be a game-changer. Reach out for more info on what qualifies and how you can take advantage of this opportunity!
