Big news for first-time homebuyers across Canada! As part of the federal government’s continued efforts to improve housing affordability, a new GST rebate program was introduced in May 2025, and it could save you up to $50,000 on your new home purchase.

At Kaizen Real Estate, we believe knowledge is power. Whether you're buying your first condo in downtown Toronto or your dream home in Markham, here’s what you need to know about this game-changing policy.

✅ What Is the GST Relief for First-Time Homebuyers?

Announced by the Department of Finance Canada, this program is designed to reduce the cost of newly constructed homes for Canadians entering the housing market for the first time.

It applies to:

• Newly constructed homes purchased from builders

• Owner-built homes

• New shares in a housing cooperative (co-op)

The rebate only applies to the federal portion of the Harmonized Sales Tax (HST) or the Goods and Services Tax (GST), not the provincial portion. This is not a loan or deferral, it’s a rebate, meaning you can keep the savings.

💵 How Much Can You Save?

The maximum GST rebate amount is $50,000 per home — a significant incentive that can reduce your closing costs and improve affordability.

Here’s how the rebate breaks down:

For homes between $1 million and $1.5 million, the rebate is gradually reduced to zero.

🗓️ Important Dates and Deadlines

To qualify for the rebate, your home purchase must meet these specific timing requirements:

• Purchase Agreement must be signed on or after May 27, 2025

• Construction must begin before 2031

• Home must be completed and ready to occupy before 2036

If you're already in the market or planning to build, now’s the time to act to ensure you qualify under the program’s timeline.

👤 Who Qualifies as a First-Time Homebuyer?

To be eligible, at least one of the home’s purchasers must meet Canada’s first-time homebuyer definition:

• You must be at least 18 years old

• A Canadian citizen or permanent resident

• Not owned and lived in another home anywhere in the world in the current or previous four calendar years

This includes individuals and couples purchasing detached homes, townhomes, condos, or even co-op shares — as long as it’s your first time stepping into homeownership and you intend to live in the property.

🏘️ What Types of Homes Qualify?

This rebate applies to:

• New homes purchased directly from builders

• Self-built homes (you build your own new home)

• Co-op housing shares (where the buyer gains occupancy rights)

❗ Note: If you’re buying into a purpose-built rental co-op project that already qualifies for the 100% GST rental rebate, you cannot stack both rebates.

📊 How Does This Affect the Real Estate Market?

The program is expected to:

• Stimulate new home construction

• Make ownership more feasible for younger Canadians

• Shift some demand away from resale homes to new builds

• Help first-time buyers compete in high-demand markets like Toronto, Vancouver, Ottawa, and Calgary

It also offers an added incentive for developers and builders, as they can market their properties with a tax-saving edge — which may drive more inventory into the pipeline.

🧠 Strategic Tips for Buyers

1. Work with a knowledgeable Realtor who understands how to structure offers for new construction and maximize rebate eligibility.

2. Talk to your builder: Not all builders price their homes with the GST included — make sure you clarify.

3. Verify your eligibility early in the process with your lawyer or accountant.

4. Get pre-approved with a mortgage broker familiar with rebate calculations and new build timelines.

5. Budget wisely: Use the rebate to offset upgrades, closing costs, or increase your down payment buffer.

🛠️ How to Apply for the GST Rebate

You can apply using Form GST191-WS and GST191 through the CRA. Your builder may also apply for the rebate on your behalf and reduce the GST at closing — ask them during your contract review.

For owner-built homes, documentation such as invoices, proof of occupancy, and construction timelines are critical.

📞 Let Kaizen Real Estate Help You Get Started

This rebate is a rare opportunity to unlock substantial savings on your first home. But the clock is ticking — and navigating the fine print can be tricky.

At Kaizen Real Estate, we specialize in guiding first-time buyers every step of the way. Whether you're buying a pre-construction condo in the GTA or a family home in the suburbs, our expert team is ready to help you make smart, informed moves.

📍 Serving clients across Toronto, Markham, Richmond Hill, Vaughan, and beyond.

👇 Ready to Take Advantage of the GST Rebate?

📞 Call or text: 647-370-8656
📧 Email: [email protected]
🌐 Visit: www.kaizenrealestate.ca

Let’s build your future, one smart move at a time.

For more details, you can view the official announcement from the Government of Canada here.