Buying your first home just got a little more affordable! The federal government has announced a full GST rebate for first-time homebuyers purchasing newly built homes valued up to $1.5 million.
If you’ve been thinking about stepping into homeownership, this could be the financial boost you’ve been waiting for. Let’s break it down.
What Is the GST Relief?
Under the new measure announced in May 2025, first-time buyers of new homes can now get a 100% rebate on the 5% federal GST, provided:
✅ The home is newly built (not a resale)
✅ The purchase price is $1.5 million or less
✅ The buyer qualifies as a first-time homebuyer
This rebate can potentially save you tens of thousands of dollars—money that can go toward your down payment, closing costs, or furnishing your new home.
Who Qualifies as a First-Time Buyer?
To be eligible, you must:
Not have owned a home anywhere in the world in the last 4 years
Intend to use the home as your primary residence
Meet any other qualifying conditions set out in the federal rebate program
Why This Matters Now
With home prices still high and interest rates creating affordability challenges, this GST relief comes at a crucial time. It could make newly built homes more attractive and within reach for many Canadians who have been on the sidelines.
📉 On a $600,000 home, 5% GST equals $30,000—which you may now get back if you qualify.
What Kinds of Homes Are Covered?
This relief applies to newly constructed homes, including:
Detached homes
Townhomes
Condos
Homes purchased directly from a builder or developer
It does not apply to resale properties or homes not intended to be your primary residence.
How to Take Advantage of the Rebate
Work with a builder or developer offering new homes under $1.5M
Confirm eligibility with your mortgage professional
Ensure your home will be your main residence
Apply for the rebate as part of your closing process
Need Help Navigating the Process?
This rebate is great news—but like any incentive, it comes with fine print and deadlines. At Sheth Mortgages, we help first-time buyers make sense of programs like this and ensure you’re maximizing every dollar.
💬 Let’s talk about your options. From budgeting and pre-approval to rebate guidance, we’ll help you make smart, informed choices.
📞 Reach out today and let’s get you closer to owning your first home—with a little less tax and a lot more confidence!