The Canadian federal government recently unveiled a new GST relief program designed to make buying a new home more accessible for first-time home buyers — and as of May 2025, the details have become much clearer.
If you’ve been following our updates, you may have already read our deep dive: Understanding Canada's New GST Rebate for First-Time Home Buyers. Now, we’re back with even more clarity — thanks to additional legal insights provided by our trusted lawyer.
Let’s break it all down.
📣 What’s New?
As of May 2025, the federal government announced full GST relief on the purchase of newly built homes (including pre-construction condos and townhomes) for qualifying first-time buyers. This incentive is part of a broader effort to boost housing affordability and stimulate supply by supporting middle-class Canadians entering the housing market.
🏷 Who Qualifies for the GST Rebate?
Here are the updated and clarified eligibility criteria:
✅ You must be a first-time home buyer.
✅ You must live in the home as your primary residence.
✅ The purchase price must be below $1.5 million.
✅ Applies to new builds only — resale homes are not eligible.
✅ This rebate is in addition to any provincial rebates or incentives already in place.
📌 Key Update: According to our legal sources, the rebate will not require income testing, but you’ll need to sign a declaration confirming you’re a first-time buyer.
🔍 What Types of Homes Are Covered?
Single-family homes
Condominiums
Townhouses
Duplexes or row houses
As long as they are newly built and not previously occupied, they qualify.
📜 Legal Clarifications You Should Know
Here are the top questions answered:
Q: Do I need to apply for the rebate separately?
A: No separate application is needed. The rebate should be automatically deducted from the purchase price during the conveyancing process — your lawyer or notary will handle the paperwork.
Q: What if I buy with a partner who isn’t a first-time buyer?
A: You may still qualify if you are a first-time buyer and the home will be your primary residence, but consult your conveyancer to ensure eligibility.
Q: Will this rebate show up in the contract?
A: Yes. Your contract will note whether the GST rebate is included in the purchase price or added on top. It’s important to clarify this with your developer or builder.
💡 How This Impacts You as a Buyer
This GST relief could save you up to $75,000 (5% of a $1.5M home) — a major cost reduction that could make the difference between affording your dream home or sitting on the sidelines.
If you’re planning to buy a pre-sale or new construction in BC or anywhere in Canada, this rebate is worth exploring further with your real estate team and legal advisor.
🗓 When Does This Take Effect?
The rebate is already in effect as of May 2025, and it applies to qualifying agreements signed on or after that date. If you’re in the market now, you may already be eligible!
📞 Have Questions? We’re Here to Help.
We stay ahead of the legal and market shifts so you don’t have to. Whether you’re a first-time buyer or helping a family member navigate the homeownership process, we’re ready to guide you.
👉 Contact us to find out how this rebate can apply to your next purchase — and let’s make your first home more affordable, together.
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