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Changes to First Time Home Buyer G.S.T. Rebate Yesterday, May 27, the Federal Government issued a
press release that is very important for first time home buyers of new homes
(and co-ops): a full GST rebate on homes under $1 million, and a partial rebate on
homes between $1 million and $1.5 million. Per the press release (the link to which is found at
the bottom of this email), the Excise Tax Act will be amended to
provide a rebate to first time home buyers. In basic terms, it means that
First Time Home Buyers will still pay the GST on the closing of a purchase of
a qualifying home but will be eligible for a rebate of the full amount (up to
$50,000). The rebate is phased out in a linear manner from $1-1.5
million. So for example, a home that is $1.4 million would lose 80% of the
rebate – in other words, it would still be eligible for a 20% ($10,000)
rebate! This policy will hopefully spur some activity in the
pre-sale market and help first time buyers enter the market. We will be updating our Knowledge Centre shortly, but
in the meantime feel free to ask any questions that come to mind. We
anticipate a large number of questions so will likely batch them and answer
them in our next email. The full press release can be found here: 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 Tony Spagnuolo |
Changes to First Time Home Buyer G.S.T. Rebate
