Introduction
The government is taking steps to help young Canadians buy their first homes and boost new housing construction across the country. They’re doing this by eliminating the Goods and Services Tax (GST) on new homes up to $1 million for first-time buyers, and by lowering the GST for them on new homes costing between $1 million and $1.5 million.
What it is:
A federal rebate eliminating or reducing the GST on new homes to help first-time buyers save up to $50,000.
Who all qualify:
- Must be a first-time home buyer (no home ownership in last 4 years).
- Canadian citizen or permanent resident, 18+.
- Home must be the primary residence.
- Applies to new homes, owner-built homes, or co-op shares.
Qualifying Home value:
- Full rebate for homes up to $1 million
- Partial rebate (phased out) for homes between $1 million and $1.5 million.
- No rebate for homes valued $1.5 million or more.
Eligibility window:
- Agreements signed or construction started May 27, 2025 – before 2031.
- Homes substantially completed by 2036.
How to apply
- Apply through the Canada Revenue Agency (CRA) with proof of purchase/construction and GST paid.
- Builders may also apply rebates at point of sale.
Why it matters:
- Reduces upfront costs, easing entry into homeownership.
- Encourages new home construction, addressing housing shortages.
- Supports financial stability for young Canadians.
Want to Know more? Reach out to The Krest Groups today. Our team can help you leverage this opportunity.
