This Is Big: GST Rebate for First Time Buyers

So, something major just happened in Canadian real estate — and if you work with first-time buyers, this is the kind of news that turns “maybe” into heck yes. On May 27, 2025, the federal government announced a new GST rebate specifically designed to make new construction homes more affordable for Canadians entering the market for the first time.

Let’s break it down — plain and simple — so you can guide your clients through what might be the best tax break they’ve seen in years. Whether you're a buyer or a REALTOR®, this one's worth paying attention to. #gstrebate #firsttimehomebuyers

What Is the GST Rebate for First Time Home Buyers?

This new incentive is a federal GST rebate for first-time home buyers purchasing newly built homes, including condos and co-ops. Here's what your clients need to know:

• 100% GST rebate on homes priced up to $1 million

• Partial rebate for homes priced between $1 million and $1.5 million

• No rebate for homes over $1.5 million

That’s potentially up to $50,000 in tax savings — making a brand-new home more accessible in places like Vancouver where affordability has been a big issue. It’s especially impactful for buyers trying to get into the market with some breathing room on closing costs. #newhomegst #vancouverrealestate

Who’s Eligible?

This rebate is for genuine first-time buyers — not investors or flippers. To qualify, buyers must:

• Be 18 years or older

• Be a Canadian citizen or permanent resident

• Not have owned a home (or lived with a spouse/partner who did) in the last 4 years

• Be purchasing the home as their primary residence

This is a once-in-a-lifetime opportunity — literally. The rebate can only be claimed once, and if a spouse or partner has already claimed it, they’re disqualified too.

What Types of Homes Qualify?

The GST rebate for first-time home buyers applies to a variety of newly constructed home types, including:

• New homes or condos bought directly from a builder

• Owner-built homes

• Shares in co-operative housing corporations

But there are two key rules: the buyer must be the first occupant, and the property has to be their primary residence. So no pre-renting or flipping if you want to take advantage of the savings.

Timing Is Everything

There are a few date-based rules to keep in mind:

• The purchase agreement must be signed on or after May 27, 2025

• Construction must begin before 2031

• The home must be substantially completed before 2036

Also, assignment deals linked to contracts signed before May 27, 2025, are not eligible — even if they close later. So timing matters more than ever.

Why This GST Rebate Matters for Buyers

For first-time buyers — especially in markets like North Vancouver, West Vancouver, and across the Lower Mainland — this is huge. Prices have been climbing for years, and getting into a new build has often felt out of reach. Now, with up to $50,000 in GST relief, new homes are back on the table.

Plus, it’s great news for builders. With a clearer path for first-time buyers to afford new construction, we’re likely to see more inventory hit the market — and faster.

#northvancouverrealtor #westvancouverrealtor

Let’s Talk Market Context

This rebate lands at an interesting time. Here’s what’s happening out there right now:

• Interest rate cuts are on pause, which offers some stability in the mortgage market

• Global trade tensions are causing uncertainty, which might spook some buyers

• Residential investment has slowed, and this rebate could help turn that around

• Wage growth is cooling, which makes affordability more pressing than ever

In short? The federal government is trying to bridge the gap between supply, affordability, and demand — and this new GST rebate is a smart lever to pull.

How REALTORS® Can Help

If you’re a REALTOR® working with first-time buyers, now is the time to pick up the phone. This is one of the most aggressive housing tax breaks we’ve seen in years. Take some time to educate your clients, scan the market for eligible homes under $1.5 million, and connect with builders who are pricing homes in the sweet spot.

For those of us working in Vancouver real estate, this is a window of opportunity — and one that could close fast if prices rise.

Final Thoughts

At the end of the day, the GST rebate for first time home buyers is a real, tangible solution to one of the biggest problems in the housing market: access. If you’re a buyer, this might be the sign you were waiting for. And if you’re a REALTOR® like me, this is a chance to offer even more value to the people we serve.

Need help navigating this rebate or want to talk strategy for your next purchase? I’m happy to help. Let’s connect.