If you’re thinking about buying a home in 2025, there’s a new GST rebate that could save you up to $50,000.
Here’s exactly what you need to know and how to make sure you don’t miss out.
What is the First-Time Home Buyer GST Rebate?
This rebate is only available on specific types of properties. These include newly built homes and substantially renovated homes.
A substantially renovated home has a very strict definition. At least 90 percent of the interior must be removed or replaced. This is typically a full gut renovation down to the studs, not a cosmetic update.
Standard resale homes do not qualify for the GST rebate. *If someone else lived in the home before you, it's not new.
For homes priced under $1,000,000, you can receive up to 100% of the GST back. The rebate phases out between $1,000,000 and $1,500,000.
The Most Important Rule: Timing of Your Purchase
The number one factor that determines eligibility is when you signed your purchase agreement.
To qualify for the new rebate, your agreement must be signed on or after March 20, 2025. *So if you bought a new home last year - you can apply now!
If you signed before that date, you will not qualify for this new program, even if your possession or closing happens later in 2025 or beyond. In that case, you may still be eligible for the previous GST rebate, but not the enhanced version.
Who Qualifies as a First-Time Home Buyer?
To qualify, you must not have lived in a home that you owned in the current year or in the previous four years.
This means some buyers who owned in the past may still qualify, depending on how long ago they sold and moved out. *Separated - you likely qualify!
If you are unsure, it is worth confirming before you move forward with a purchase
Common Mistakes to Avoid
One of the most common mistakes is assuming that any new-looking or recently renovated home qualifies. In reality, most flips and cosmetic renovations do not meet the criteria.
Another mistake is focusing on the possession date instead of the contract date. The signing date of your agreement is what determines eligibility.
Buyers also often assume that if GST is not clearly listed, the rebate does not apply. In some cases, GST may be included in the purchase price, so it is important to confirm how the property is structured.
How It Works in Reality
You can start by asking if GST applies to the purchase. You should also ask whether the home is considered new or substantially renovated for GST purposes. Is the builder applying for the rebate and lowering the price, or are you paying FULL price and applying later? In some cases, the builder may credit the rebate upfront, while in others you may apply after closing. You need to qualify for the purchase price when applying for a mortgage.
Final Thoughts
If you want to know whether you qualify or you are trying to decide between a resale and a new build, I can walk you through it.
I will look at your timeline, your budget, and the type of property you are considering and give you a clear answer on what makes the most sense for you.
Reach out anytime and we can map it out before you make a move.
*Already made your purchase? Apply here: https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/gst-hst-rebates/new-housing-rebate.html