What’s New for First-Time Home Buyers
Part of Bill C-4 includes a GST/HST rebate (or exemption) adjusted for first-time homebuyers of new homes:
- New homes up to $1 million are fully exempt from GST.
- Homes between $1 million and $1.5 million receive partial (reduced) GST coverage.
- Homes at or above $1.5 million are not eligible for this benefit. (canada.ca)
These changes apply to purchase agreements entered on or after March 20, 2025, and before 2031, with construction needing substantial completion before 2036. (canada.ca)
What Buyers Should Know
- New builds only: This is for newly constructed homes under a builder purchase agreement. Existing resale homes do not apply.
- Agreement date matters: Make sure your offer or builder contract is on or after March 20, 2025. Anything before that is ineligible.
- Home value limits: If your purchase price is between $1M-$1.5M, expect proportionate phase-out; full relief only below $1M.
- Construction deadline: The home must be substantially completed by 2036 to qualify.
Practical Example
Suppose you contract a new home priced at $1.2 million on April 15, 2025. Since it's between $1M-$1.5M, you’ll get a partial rebate of GST, phased out linearly (e.g., roughly half between those thresholds) — up to a cap of $50,000. $. Full 100% exemption if price ≤ $1M. $ Price ≥ $1.5M, no rebate. Also, ensure substantial completion by 2036.
How to Plan for the Rebate
- Lock in contracts early to ensure purchase agreement dates are valid.
- Get professional help: speak to realtor, lawyer, or tax advisor to verify how the rebate works in your province (if HST applies, besides GST).
- Document everything: contracts, builder agreements, completion dates, proof of first-time buyer status.
Bottom line: This GST relief is one of the most generous in recent memory for new home buyers—but only if you hit the right timing, values, and construction deadlines. Plan carefully to make this work for you.