With housing affordability at the forefront of national discussions, the Government of Canada has taken a major step to support first-time homebuyers. As of May 27, 2025, a new federal GST rebate program is available for first-time buyers purchasing new homes across Canada. This rebate can offer savings of up to $50,000, depending on the home’s price.
What Is the 2025 GST Rebate?
Under the new program:
- First-time homebuyers can receive a 100% rebate on the 5% federal GST for newly constructed homes priced up to $1 million.
- For homes priced between $1 million and $1.5 million, the rebate is gradually reduced.
- Homes priced at or above $1.5 million are not eligible for the rebate.
Who Qualifies?
To be eligible for the new GST rebate, the buyer must:
- Be a first-time homebuyer (no ownership of a home in the last 4 years)
- Be at least 18 years old
- Be a Canadian citizen or permanent resident
- Intend to use the home as their primary residence
- Be the first occupant of the home
How Much Can You Save?
Let’s break it down with examples of various new home purchase prices:
| Home Price | GST (5%) | Rebate % | Rebate Amount | GST Payable After Rebate |
| $900,000 | $45,000 | 100% | $45,000 | $0 |
| $1,000,000 | $50,000 | 100% | $50,000 | $0 |
| $1,100,000 | $55,000 | 80% | $44,000 | $11,000 |
| $1,200,000 | $60,000 | 60% | $36,000 | $24,000 |
| $1,300,000 | $65,000 | 40% | $26,000 | $39,000 |
| $1,400,000 | $70,000 | 20% | $14,000 | $56,000 |
| $1,500,000 | $75,000 | 0% | $0 | $75,000 |
| $1,600,000 | $80,000 | 0% | $0 | $80,000 |
Rebate phases out linearly between $1 million and $1.5 million. At $1.25 million, for example, you’d receive a 50% rebate.
What About the Ontario HST Rebate?
If you’re buying a new home in Ontario, you may also qualify for a provincial HST rebate of up to $24,000 on the 8% provincial portion of HST. This is separate from the new federal GST rebate and applies regardless of whether you qualify for the federal program, though conditions may vary.
How to Apply
- Federal Rebate:
Submit Form GST190 to the CRA.
- Ontario Rebate (if applicable):
Submit Form RC7190-ON alongside the federal form.
- Builder-Assisted Application:
Many builders offer to apply the rebate directly on your behalf at the time of purchase.
Key Dates
- Program Start: May 27, 2025
- Eligibility Window: Agreements signed between May 27, 2025, and December 31, 2030
- Construction Deadline: Home must be substantially completed by December 31, 2035
The 2025 GST rebate for first-time homebuyers is a game-changing incentive for Canadians looking to step into the housing market. Whether you’re eyeing a $900K condo or a $1.3M detached home, this rebate can help reduce your upfront costs significantly.
If you’re planning to buy a new home, make sure you understand how this rebate applies to your situation—and don’t leave thousands of dollars on the table.
Need Help Navigating Your First Home Purchase?
As your trusted real estate advisor in the GTA, I’m here to guide you through every step—from eligibility to builder negotiations and rebate claims. Let’s turn your dream address into reality.
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“If you’re planning to buy a new home, contact me to discuss your eligibility and rebate potential.” - First-Time Buyer Resources
“Check out our first-time buyer resources for more tips on homeownership.” - Ontario HST Rebate Guide
“Learn how the Ontario HST rebate can save you up to $24,000.” - Latest Market Trends
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