The Great GST Rebate: How First-Time Buyers Can Actually Save Up to $50K

There’s a shiny new tax perk on the table for first-time homebuyers, and yes, it could save you up to $50,000. Sounds too good to be true? Welcome to the 2025 GST rebate on new homes.

Here’s the deal: as of May 27, 2025, the federal government is eliminating the 5% GST on new homes up to $1 million for first-time buyers. If your purchase price falls between $1 million and $1.5 million, the rebate is gradually phased out. So if you’re building, buying, or eyeing a sparkling new condo, this could make a serious dent in your mortgage costs.

Let’s talk numbers. According to a Desjardins report, that rebate could trim around $240 off your monthly mortgage payments, or put another way, help with that down payment hurdle by reducing your total closing costs by tens of thousands.

This change is especially welcome in markets like Vancouver and parts of BC or Alberta, where new builds often hover around the $1 million mark. Nearly 85% of new builds nationally qualify. Even in higher-priced regions, a solid chunk of homes now qualify for at least a partial rebate.

So what should you do?

1. Double-check builder pricing. Some include GST in their list price; others tack it on after. That impacts your financing.

2. Ask your mortgage broker early. A well-timed pre-approval can include this rebate in your affordability numbers.

3. Act before 2031. Homes must be purchased by then and completed by 2036. Sounds like a long runway, but hey, the market waits for no one.

   
   

This is a powerful policy for first-time buyers to leapfrog into ownership. And if you’re wondering whether it makes more sense to go new or resale, well… let’s run the math together. If you’re in BC or Alberta and ready to see how this plays out in real dollars, reach out.

Chad Eliason⠀⠀⠀⠀⠀⠀⠀

250.804.9874⠀⠀⠀⠀⠀⠀⠀

info@chadeliason.ca