GST Rebate for First-Time Home Buyers Canada 2025: What You Need to Know
- Seventy Seven Park
- 14 hours ago
- 3 min read
The GST rebate for first-time home buyers Canada 2025 is now in effect, offering potential savings of up to $50,000 on new homes across the country. In a housing market where affordability is a constant challenge, this new rebate could be a critical tool for Canadians looking to enter the property market for the first time.
Here is everything you need to know about the GST rebate for first-time home buyers Canada 2025, how it works, and how our team at Seventy Seven Park can help you take advantage of it.
What Is the GST Rebate for First-Time Home Buyers Canada 2025?
As of May 27, 2025, first-time home buyers can now claim:
A full GST rebate (up to $50,000) on new homes priced under $1 million
A partial GST rebate on homes priced between $1 million and $1.5 million
No rebate on homes priced at or over $1.5 million.
The GST rebate for first-time home buyers Canada 2025 applies to:
New homes purchased from a builder
Owner-built homes
Shares in cooperative housing corporations
To qualify, the following conditions must be met:
The agreement of purchase and sale for the home must be entered into with the builder on or after May 27, 2025, and before 2031
Construction of the home must begin before 2031
The home must be substantially completed before 2036
This is an important detail, as some projects may not break ground for several years. Buyers should carefully review project timelines with their builder or developer to ensure eligibility.
You can read the full official announcement from the Government of Canada here.
Who Is Eligible for the GST Rebate?
To qualify for the GST rebate for first-time home buyers Canada 2025, buyers must:
Be 18 years of age or older
Be a Canadian citizen or permanent resident
Not have owned a home in Canada or elsewhere in the current calendar year or the four preceding years
Intend to occupy the home as their primary residence
These rules apply whether you are purchasing a newly built home, building your own, or purchasing shares in a co-op.
How Much Can First-Time Buyers Save?
Savings are based on the purchase price of the home:
On a $1 million home: Up to $50,000 rebate
On a $1.25 million home: Approx. $25,000 rebate
On a $1.5 million home or higher: No rebate
According to Storeys, while this is a welcome affordability measure, many industry experts suggest that extending the rebate to all buyers would have an even greater impact on housing supply and affordability.
Impact on Toronto and GTA Home Buyers
In the Toronto and GTA market, where affordability remains top of mind, the GST rebate for first-time home buyers Canada 2025 provides timely financial relief:
Many new condo projects in Toronto will qualify under the $1 million threshold
Numerous townhome and suburban developments will fall into the partial rebate range
The rebate can free up funds to cover closing costs, renovations, or furnishings
How Seventy Seven Park Helps First-Time Buyers Maximize Savings
At Seventy Seven Park, we specialize in helping buyers understand and navigate opportunities like the GST rebate for first-time home buyers Canada 2025. Our team can:
Identify qualifying homes and developments
Advise you on timing your purchase to meet rebate deadlines
Structure your mortgage and financing for maximum savings
Guide you through the entire buying process, from builder selection to rebate filing
Next Steps: How to Start Your Home Buying Journey
If you are thinking of buying your first home, now is the time to explore how the GST rebate for first-time home buyers Canada 2025 can impact your purchase.
Contact us today for a complimentary consultation:
Seventy Seven Park
+1 (416) 455-3800
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