The Game-Changer Every First-Time Buyer Should Know About
As of May 27, 2025, the Canadian federal government launched a brand-new GST rebate program specifically for first-time homebuyers. If you're planning to buy a newly built home in Ontario, this could mean up to $50,000 back in your pocket.
This isn’t the old rebate we’ve known since the 90s—this is a bold, new incentive for a new generation of buyers. Here’s what you need to know.
👉 Call to Action: Browse new build homes for sale and see if you qualify for the full GST rebate.
What Is the New GST Rebate?
It’s a 100% rebate of the federal portion of the GST (5%) for eligible first-time buyers purchasing new homes valued at $1 million or less.
If the home is priced between $1 million and $1.5 million, the rebate phases out gradually. Any property over $1.5 million is ineligible.
Full Rebate = Up to $50,000 back
Partial Rebate = Scaled based on home price
When Did It Start?
This rebate applies to agreements signed on or after May 27, 2025 and is valid until construction begins before 2031 (and is substantially completed by 2036).
That means if you're currently shopping for a new home, you're in the sweet spot.
👉 Call to Action: Find a community with eligible builds before this window closes.
Do You Qualify? Let’s Find Out
To claim this rebate, you must:
✅ Be a first-time buyer (no home ownership in the past 4 years—yours or your spouse’s)
✅ Be a Canadian citizen or permanent resident
✅ Be 18 years or older
✅ Intend to use the home as your primary residence
✅ Be the first occupant of the home
Examples: How Much Could You Save?
🏡 $800,000 Home
GST: $40,000
Rebate: 100% = You save the full $40,000
🏡 $1.25M Home
GST: $62,500
Rebate: 50% = You save $31,250
🏡 $1.6M Home
GST: $80,000
Rebate: $0 (ineligible due to price)
How to Apply (or Not Apply)
Most builders will apply the rebate directly to the purchase price—no paperwork required from you.
BUT: If it's not included, you’ll need to submit:
Form GST190
Ontario rebate forms if applicable
Proof of purchase, closing docs, and ID
All forms go to the Canada Revenue Agency (CRA) within 2 years of purchase.
How This Works With Other Rebates
The new GST rebate can stack with the existing:
Ontario New Housing Rebate (up to $24,000 for provincial HST)
Land Transfer Tax Rebates (up to $4,000 in Ontario)
First Home Savings Account (FHSA) benefits
This is not a replacement—it’s a bonus layer of savings.
A Few Warnings
❌ Assigned agreements dated before May 27, 2025 don’t qualify ❌ If your spouse claimed the rebate before, you may be disqualified ❌ You must live in the home yourself, not rent it out
Final Thoughts: Don’t Leave Money on the Table
This rebate is one of the most impactful benefits first-time buyers in Ontario have ever received. If you're buying new, check your eligibility and make sure your lawyer or agent understands the process.
📞 Need help navigating rebates, forms, or qualifying communities? Let’s talk. We can connect you with rebate-smart experts who’ve done this dozens of times.
PS: Don’t wait. This rebate only applies to new builds signed from May 27, 2025—and you must be the first to move in. Act fast and save big.
