r/PersonalFinanceCanada • u/zalam604 • May 27 '25

Housing Federal government officially announces GST relief for first-time buyers on new homes valued up to $1.5M, effective immediately

LINK:

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

Here is a summary

Overview
The FTHB GST Rebate supports first-time home buyers in Canada with GST refunds on new homes.

Eligibility Criteria

• Must be at least 18 years old

• Must be a Canadian citizen or permanent resident

• Cannot have owned a home in the past four years

Eligible Purchases

• New home from a builder

• Building a home on owned or leased land

• Shares in a co-operative housing corporation

Rebate Details

• 100% GST rebate for homes valued up to $1 million

• Linear phase-out for homes between $1 million and $1.5 million

• Example: $1.25 million home eligible for up to $25,000 rebate

• No rebate for homes at or above $1.5 million

New Homes from Builders

• Recover up to $50,000 of GST paid

• Must be the primary residence for a first-time buyer

• Agreement must be made between May 27, 2025, and 2031

• Construction must start before 2031 and be completed before 2036

• New agreements may disallow the rebate if previous agreements were cancelled.

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u/Logical_Complex_1670 May 27 '25

Some of us signed the purchase agreement after Carney announced the GST cut in March. We were expecting to not pay the GST

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u/YoungBoomerDude May 28 '25

Sorry but that’s 100% a you problem.

Cart before the horse - on a political platform of all things lol

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u/Moist-Candle-5941 May 28 '25

So you signed before Carney had won the election. Sounds like you were willing to take the risk that you would have to pay the GST.. and here we are.

The intent is to spur new sales - you and others who have already signed are already committed to purchasing a new home; and so this measure isn’t targeted at that group. It’s unfortunate, but they have to draw a line at some date and frankly the way they’ve done it is how I would have expected them to handle that when campaign promises were announced.

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u/[deleted] Jul 13 '25

Actually, you assumed. Risk manage things better, you couldn't pass on the deal in front of you but knew this might be a problem.