In a move to support first-time home buyers, the government has proposed a new GST rebate program aimed at making homeownership more attainable. Under this initiative, eligible buyers purchasing new homes valued up to $1.5 million may qualify for a GST rebate, with full relief available on homes priced at $1 million or less.

The rebate is designed to phase out gradually between $1 million and $1.5 million. For example, a $1.25 million home would receive a 50% rebate on the lesser of the GST on $1 million (i.e., $50,000) or the actual GST paid.

Eligible purchases include homes bought from builders, owner-built homes, and shares in cooperative housing corporations. Qualifying property types range from detached houses and condos to mobile and floating homes.

To be a first-time home buyer, the taxpayer would need to meet the following conditions:

• not have lived in a home, whether inside or outside Canada, that they owned or that their spouse or common-law partner owned in the calendar year or in the four preceding calendar years.
• be at least 18 years of age;
• be either a Canadian citizen or a permanent resident of Canada; and

Key dates to note: purchase agreements with builders must be signed between May 27, 2025, and December 31, 2030. For owner-built homes, construction must begin no earlier than May 27, 2025, and be substantially completed before 2036.

This rebate offers meaningful financial relief and could be a game-changer for Canadians looking to enter the housing market for the first time.