Canada Offers Up to $50K GST Rebate for First-Time Buyers on New Homes Under $1.5M

Canada Offers Up to $50K GST Rebate for First-Time Buyers on New Homes Under $1.5M

The Government of Canada has introduced a new GST rebate to support first-time home buyers and boost housing construction.

Effective May 27, 2025, the rebate includes:

• Full GST rebate on new homes priced up to $1 million, saving buyers up to $50,000

• Partial GST rebate for homes priced between $1 million and $1.5 million, decreasing linearly

• No rebate for homes over $1.5 million

Eligible buyers must be Canadian citizens or permanent residents, at least 18 years old, and not have owned a home in the current or previous four calendar years. The rebate applies to new homes from builders, owner-built homes, or shares in cooperative housing. Construction must start between May 27, 2025, and 2031, with completion by 2036.

This program is expected to deliver $3.9 billion in tax relief over five years.

Source: canada.ca