Big savings ahead for Canadians entering the housing market
As of May 27, 2025, the Canadian government has introduced a major new incentive for first-time home buyers: a GST rebate of up to $50,000 on new homes. If you’re buying your first home—or working with clients who are—this is big news.
The new First-Time Home Buyers’ GST Rebate (FTHB GST Rebate) eliminates the federal GST (or the federal portion of the HST) on new homes priced up to $1 million, and provides partial relief for homes priced between $1 million and $1.5 million. The goal? To lower upfront costs for first-time buyers and encourage more home construction across the country.
Here’s how it breaks down:
🏠 100% GST rebate on new homes priced up to $1 million
🏗 Partial GST rebate (phased out linearly) on homes from $1 million to $1.5 million
❌ No rebate on homes $1.5 million and up
To qualify, you must:
Be 18+, a Canadian citizen or permanent resident
Not have owned (or lived in a home owned by a partner/spouse) in the last 4 calendar years
Be buying the home as your primary residence
Plus, only one buyer needs to meet the criteria—great news for couples where one partner is a repeat buyer but the other isn’t.
There are three ways to qualify:
Buying a new home from a builder
The home must be substantially completed before 2036, and the purchase agreement must be signed between May 27, 2025 and 2031.
Building your own home
If you’re taking on the build (or hiring a builder), you can still qualify for the full rebate.
Buying into a co-op
First-time buyers purchasing a co-op unit share can also benefit—provided they’re the first to occupy the unit.
The FTHB GST Rebate only applies to new purchase agreements signed on or after May 27, 2025. Deals signed before that date won’t qualify, even if closing hasn’t occurred yet.
Heads up: You can only claim this rebate once in your lifetime, and if your spouse or partner already claimed it, you’re no longer eligible.
With multiple new developments on the go in our mountain town, including options starting under the $1M mark, this rebate could make a real difference in helping locals and newcomers alike get into their first homes.
If you’re looking at buying new construction or building your dream home here in Revelstoke, this rebate could be the push you need.
Have questions about how this affects your buying journey?
Let’s talk. Whether you’re ready to start house hunting or just exploring your options, we’re here to help.
This post is for informational purposes only and should not be considered tax or legal advice. Please consult with a tax professional for specific guidance.
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