The First-Time Buyer GST Rebate on New Homes

Buying a brand-new home or condo? A new federal program — the First-Time Home Buyers' GST/HST Rebate — can put up to $50,000 back in your pocket by removing the GST on qualifying new builds. This guide explains exactly how much you can save, the price thresholds that govern it, and the dates that decide whether you qualify.

Key takeaways

• The rebate is worth up to $50,000 — the full GST is removed on new homes valued up to $1,000,000.
• Between $1,000,000 and $1,500,000 the rebate phases out gradually; above $1.5M there's no rebate.
• It applies only to new builds, where your purchase agreement is signed on or after May 27, 2025 and before 2031.
• It's a first-time-buyer program — it stacks with the FHSA, the RRSP Home Buyers' Plan and land transfer tax rebates.
• Resale homes don't charge GST, so this rebate is specific to new construction.

What is the GST rebate on new homes?

When you buy a newly built home or condo in Canada, GST applies to the purchase price — unlike a resale home, where it doesn't. The First-Time Home Buyers' GST/HST Rebate removes that GST for eligible first-time buyers, up to a maximum of $50,000. It's one of the most valuable incentives available for buyers of new construction.

New builds only

Resale (previously owned) homes don't charge GST, so this rebate only matters if you're buying a new home, a pre-construction condo, or a substantially renovated property from a builder.

This is a genuinely new program, designed to make new construction more attainable for people entering the market for the first time. On a typical new build it represents one of the largest single savings a first-time buyer can access — often dwarfing the land transfer tax rebates that get far more attention.

How much you can save

The benefit depends on the price of the home. The full GST is removed on homes valued up to $1,000,000. Between $1,000,000 and $1,500,000 the rebate phases out on a sliding scale, and at $1,500,000 or more there's no rebate at all.

Who qualifies and the key dates

This is a first-time-buyer program with specific timing rules. To qualify:

• You must be a first-time home buyer.
• The home must be a new build (new construction or a substantially renovated home from a builder).
• The purchase agreement (APS) must be signed on or after May 27, 2025.
• The agreement must be signed before 2031.

The agreement date is what counts

Eligibility hinges on when your Agreement of Purchase and Sale is signed — on or after May 27, 2025 and before 2031. If you're buying pre-construction, keep your paperwork and dates carefully documented.

Because pre-construction projects can take years to close, the signing date — not the closing date — is the milestone to watch. If you signed your agreement before May 27, 2025, the rebate won't apply even if the home isn't finished until later. When in doubt, confirm your eligibility against the current rules on the official Canada Revenue Agency page before you count on the savings.

Stacking it with other incentives

The GST rebate doesn't replace other first-time-buyer benefits — it adds to them. A first-time buyer of a new home could combine several programs:

See the full list in first-time home buyer programs in Canada and the first-time home buyer guide for Ontario. For the land transfer side, read the first-time buyer land transfer tax rebate.

How HOMEH helps

Knowing which rebates apply to your purchase can change your entire budget. HOMEH's free calculators help you estimate closing costs and what you can afford after factoring in incentives. Start with the closing cost calculator and the broader closing costs in Ontario guide.

Stack cashback on top of your rebate

Beyond government rebates, eligible HOMEH buyers receive the industry's highest Cashback Rebate — money back in your pocket on a new build. See what you qualify for at HOMEH cashback.

Ready to budget your new home with rebates and cashback included? Run the numbers with the closing cost calculator.