Federal GST Rebate Now in Effect for First-Time Home Buyers – A Major Win for CHBA Members

The federal government has officially announced a new GST rebate for first-time home buyers, effective May 27, 2025—a direct result of years of CHBA advocacy and a final push with the new government. 

The First-Time Home Buyer (FTHB) GST Rebate will:

• Eliminate GST on new homes priced up to $1 million
• Reduce GST on homes priced between $1 million and $1.5 million (phased out linearly)
• Offer a rebate of up to $50,000 on eligible new home purchases

To qualify, at least one purchaser must:

• Be a first-time home buyer
• Use the home as their primary residence
• Be the first occupant of the home

The rebate applies to:

• New homes bought from a builder (including leased land)
• Homes built by or for the buyer on owned/leased land
• Shares purchased in a co-operative housing corporation

Purchase agreements must be signed between May 27, 2025, and 2031, with construction starting before 2031 and completion by 2036.

What This Means for Builders and Buyers

This rebate is expected to prompt more first-time buyers to enter the market, helping stimulate sales and increase housing supply. It also adds clarity for those who’ve been waiting on the sidelines.

CHBA continues to press for:

• Expanding the rebate to all buyers, not just first-timers
• Including secondary suites and accessory dwelling units (ADUs)
• Applying relief to homes under construction that haven’t yet closed

Without these changes, many Canadians who signed agreements before May 27, 2025—but haven’t yet taken possession—could miss out.

This policy was introduced shortly after the federal Throne Speech and is expected to pass quickly in Parliament. CHBA will remain engaged on this and other housing priorities to ensure the best outcomes for industry and buyers alike.