New GST Measures for First-Time Home Buyers in Canada

The Canadian government has announced a significant policy change aimed at easing the financial burden of homeownership for young Canadians and promoting the construction of new homes across the country. Effective May 27, 2025, these measures will target first-time home buyers, providing substantial savings on newly constructed homes.

To make homeownership more affordable, the Goods and Services Tax (GST) will be eliminated for first-time home buyers on new homes priced up to $1 million, saving new homebuyers up to $50,000. For homes priced between $1 million and $1.5 million, the rebate is gradually reduced through a linear phase-out. This means the higher the home price within that range, the smaller the rebate. For example, a $1.25 million home would qualify for a 50% rebate, resulting in savings of up to $25,000. Homes priced at $1.5 million or more are not eligible for the rebate.

Buyer Eligibility:

In order to qualify for this First Time Home Buyer’s GST Rebate, the following conditions must be met:

• The Purchaser must be at least 18 years of age
• The Purchaser must be either a Canadian citizen or a permanent resident of Canada
• The Purchaser must not have lived in a home, whether inside or outside Canada, that they owned or that their spouse or common-law partner owned in the calendar year or the four preceding calendar years.
• At least one of the Purchasers must be a first-time home buyer acquiring the new home for use as their primary place of residence.
• An individual would not be permitted to claim a First Time Home Buyers’ GST Rebate more than once in their lifetime.
• An individual would not be permitted to claim a First Time Home Buyers’ GST Rebate if their spouse or common-law partner previously claimed a FTHB GST Rebate.

Qualifying Details:

The First Time Home Buyers’ GST Rebate applies to all product segments (laned, paired, & front-drive garage) that Cedarglen Homes sells, including pre-sale homes and quick possession home. In addition, the following conditions must be satisfied:

• The Purchase Agreement with Cedarglen Homes must be submitted on or after May 27, 2025 for the rebate to apply.
• For assignment sales, if a first-time home buyer assumes the rights and obligations of another person under an agreement of purchase and sale with a builder, the rebate will not apply if the original agreement was entered into before May 27, 2025.
• If an agreement of purchase and sale for a new home was originally entered into before May 27, 2025, and is subsequently canceled, varied, or altered to effect a new agreement, the rebate may be disallowed.

This initiative put in place by the Canadian government demonstrates a meaningful step towards making homeownership more attainable for young Canadians. By addressing affordability and encouraging the development of new homes, the government aims to create opportunities for first-time home buyers to establish roots and invest in their futures. For more details on how this new incentive will affect the purchase of your new Cedarglen Homes, please contact our Sales Teams directly.

This information is based on the Department of Finance Canada’s news release dated May 27, 2025 and may be subject to change or interpreted differently.  For the most accurate and comprehensive details regarding the FTHB GST Rebate always refer to the news article directly – GST relief for first-time home buyers on new homes valued up to $1.5 million – Canada.ca .