AWAITING PARLIAMENTARY APPROVAL: New GST Relief for First-Time Homebuyers: What You Need to Know

On May 27, 2025, the Canadian government unveiled a significant update to its housing affordability strategy: the First-Time Home Buyers’ GST Rebate. This initiative aims to alleviate the financial burden for first-time buyers and stimulate the construction of new homes across the country.

🏡 What Is the First-Time Home Buyers’ GST Rebate?

The rebate allows eligible first-time homebuyers to recover a portion—or even all—of the Goods and Services Tax (GST) paid on new homes:

– 100% GST rebate on new homes priced up to $1 million.

– Partial rebate on homes priced between $1 million and $1.5 million, with the rebate amount decreasing linearly.

– No rebate for homes priced at $1.5 million or more.

This measure is expected to provide up to $50,000 in tax relief per eligible buyer and deliver approximately $3.9 billion in savings to Canadians over five years.

✅ Who Is Eligible?

To qualify for the rebate, you must:

– Be a first-time homebuyer (i.e., you haven’t owned a home in the past four years).

– Be a Canadian citizen or permanent resident aged 18 or older.

– Use the home as your primary residence.

– Purchase a newly constructed home from a builder, build a home on land you own or lease, or buy shares in a co-operative housing corporation.

Additionally, the purchase agreement must be signed between May 27, 2025, and December 31, 2030, with construction starting before 2031 and completion by 2036.

🏗️ Why This Matters

This rebate is part of a broader federal initiative to address Canada’s housing crisis by making homeownership more accessible and encouraging the construction of new homes. By reducing the upfront costs for first-time buyers, the government aims to help more Canadians enter the housing market and increase the overall housing supply.

💡 Additional Incentives for British Columbia Residents

If you’re purchasing your first home in British Columbia, you may also be eligible for:

– Property Transfer Tax (PTT) Exemptions: Full or partial exemptions on homes valued up to $860,000.

– Newly Built Home Exemption: For new homes valued up to $1.1 million.

– First Home Savings Account (FHSA): Contribute up to $40,000 tax-free.

– Home Buyers’ Tax Credit: A non-refundable tax credit of up to $1,500.

– 30-Year Mortgage Terms: Extended amortization periods for insured mortgages.

📞 Need Assistance?

Navigating the various rebates and incentives can be complex. If you’re considering purchasing your first home and want to understand how these programs can benefit you, feel free to reach out. We’re here to help you make informed decisions and take full advantage of the available opportunities.

For more detailed information on the First-Time Home Buyers’ GST Rebate, visit the official Government of Canada announcement: https://www.canada.ca/en/department-finance/news/2025/05/gst-relief-for-first-time-home-buyers-on-new-homes-valued-up-to-15-million.html

To track the progress of the approval of this initiative, visit https://www.parl.ca/legisinfo/en/bill/45-1/c-4

Call 236-700-0139 or book your free consultation today.