Update: GST Rebate Now Officially in Effect
The First-Time Home Buyer GST Rebate is no longer just a proposal, it’s now law. With the passing of Bill C-4, the Government of Canada has officially implemented this rebate, providing greater certainty for both buyers and builders.
With Royal Assent now granted, eligible first-time buyers can move forward with confidence knowing the rebate is fully in place. The Canada Revenue Agency (CRA) is expected to release the official application forms shortly, which will allow builders to apply the rebate directly at closing in many cases.
This is a major step forward in improving housing affordability and helping more Canadians enter the market sooner. See further details below on eligibility.
Your Chance to Save Big on a New Home
Buying your first home is an exciting milestone — but it also comes with real financial considerations. That’s why the Government of Canada’s First-Time Home Buyer GST Rebate is such welcome news. Designed to make newly built homes more accessible, this incentive could put up to $50,000 in GST savings back in your pocket, significantly lowering your upfront costs at closing. If you’ve been thinking about building or purchasing a brand-new home, this rebate is a real opportunity that helps turn your homeownership plans into reality.
What Is the Rebate?
The First-Time Home Buyers’ GST Rebate lets qualifying buyers recover some or all of the federal Goods and Services Tax (GST) they pay when purchasing a new home. It’s separate from, and in addition to, the existing GST new housing rebate.
How Much Could You Save?
- Up to 100% of the GST on a new home priced up to $1,000,000 — meaning up to approximately $50,000 in GST savings.
- Partial rebate for homes between $1,000,000 and $1,500,000 — phased out on a sliding scale.
- No rebate for homes $1,500,000 or more.
Who Qualifies?
To be eligible for the rebate:
- You must be a first-time home buyer — meaning you (and your spouse or common-law partner) must not have owned and lived in a home as your primary residence in the current calendar year or any of the previous four calendar years.
- You must be at least 18 and a Canadian citizen or permanent resident.
- The home must be newly built or substantially renovated and intended to be your primary place of residence.
In many cases, the rebate can be applied directly by the builder at closing, reducing the amount you need upfront. Buyers who have already taken possession may apply directly through the CRA.
At Prominent Homes, we know how important every dollar is, especially for first-time buyers entering today’s market. Whether you are looking for a presale or quick possession townhome, duplex, or single-family home, you can move forward with confidence knowing your GST savings are protected.
When Does It Apply?
The rebate applies to new homes purchased under agreements signed on or after May 20, 2025 and before 2031 — so buyers planning ahead for a new build this year could benefit.
Why This Matters for New Home Buyers
This new rebate makes new homeownership more affordable by reducing upfront tax costs — potentially putting tens of thousands of dollars back in the pockets of first-time buyers. Combined with other incentives and provincial programs where available, it could make a major difference in budgeting for your first home.
Ready to Learn More?
If you’re a first-time buyer, our team is happy to walk you through the GST Rebate and how it could apply to your next home purchase. We’re committed to supporting buyers every step of the way, because going above and beyond is part of our Prominent Promise.
Qualification details regarding the First-Time Home Buyers’ GST Rebate are available from the Department of Finance Canada’s news release.
Contact Our Expert Sales Team today to learn more about the GST Rebate. Your new home is waiting for you!