A Game-Changer for First-Time Home Buyers

If you’ve been sitting on the sidelines waiting for the right time to buy your first home, 2025 might just be the year that changes everything. The Canadian government has rolled out a brand-new GST rebate designed specifically to help first-time buyers get into the market — and the savings can be substantial. In fact, according to the Government of Canada’s official announcement, eligible buyers could save up to $50,000 on sales taxes when purchasing a newly built home.

How the Rebate Works

If your new home is priced at $1 million or less, you qualify for a full GST rebate — meaning thousands of dollars back in your pocket. For homes between $1 million and $1.5 million, the rebate phases out gradually. For example, a $1.25 million home could still save you around $25,000. Properties over $1.5 million do not qualify. This program applies to newly constructed homes, pre-construction condos, and even custom homes you build yourself.

Eligibility Requirements

As explained in PwC’s detailed tax insights, you must:

• Be a first-time homebuyer

• Be at least 18 years old

• Be a Canadian citizen or permanent resident

• Make the home your primary residence and be the first occupant

Applying is simple: you can fill out the CRA’s Form GST190 yourself, or in some cases, your builder can apply on your behalf and credit the rebate at closing. Claims must be submitted within two years of closing.

Important Deadlines

According to Mondaq’s market breakdown:

• Purchase agreement signed on or after May 27, 2025

• Construction starts before 2031

• Home substantially completed before 2036
  

How This Could Impact the Canadian Real Estate Market

This rebate could have a ripple effect across the housing sector. For first-time buyers, it lowers the financial barrier to entry, especially in high-cost markets like Vancouver and Toronto. Increased affordability could drive more demand for new homes and pre-construction condos, which might encourage developers to launch more projects. Over time, a rise in demand could also put mild upward pressure on prices in the new home sector. Resale markets may see a shift in buyer interest toward new construction, potentially balancing demand between the two segments. Overall, this incentive could inject fresh energy into Canada’s housing market and stimulate related industries such as construction, design, and real estate services.

Why This Matters for You

Imagine walking into a brand-new home with that dream kitchen you’ve been pinning on Pinterest, a sunny balcony for morning coffee, or simply the satisfaction of turning the key and knowing, “This is mine.” This rebate isn’t just about numbers — it’s about creating real opportunities for Canadians to build a future in a home they love.

If you’re ready to see how this program could work for you, let’s connect. I can guide you through the process, help you find qualifying homes, and ensure you take full advantage of this incredible first-time buyer incentive.