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GST RELIEF FOR FIRST TIME HOME BUYERS

GST RELIEF FOR FIRST TIME HOME BUYERS

Finally! The Canadian Government and the Minister Of Finance and National Revenue toppled the GST on new build construction homes starting May 27th, 2025. The long overdue rebate will bring some relief to buyers when shopping for new build homes potentially saving up too $50,000 on their purchase. So what criteria qualifies for this rebate?


FIRST TIME HOME BUYER REBATE ELIGIBLITY 

If you're a first time home buyer, you may be eligible for this rebate. Lets take a look at what criteria needs to be met:

  • You have to purchase a new home from a builder on or after May 27th, 2025. If purchased before this date, you will not be elidable 
  • Must be a Canadian Citizen or Permanent Resident 
  • You build or hire a builder or contractor to build a home on land you own or lease
  • You buy shares of a co-operative housing building
  • Must be 18 years of age or older

Unfortunately, resale homes DO NOT fall under this category, BUT this is a step in the right direction.


LIMITATIONS

There are some limitations to the availability of the GST Rebate in certain circumstances. These include the following:

  • Purchase price must be under 1.5 million
  • You can not claim the rebate more than once in your lifetime
  • If your spouse or common law partner has claimed the GST Rebate previously 
  • If, it is an assignment sale, (meaning you purchased a new build from the original buyer of the property before it closes), you will not be eligible if the original agreement was signed before May 27th, 2025 with the original buyer
  • If an agreement of purchase of sale is cancelled or terminated that was originally signed before May 27th, 2025, than a new agreement was entered into after May 27th, 2025, you may not qualify for the GST Rebate. 


SUMMARY

This is an encouraging step in the right direction for first time home buyers to enter the market. Truthfully, I do not think this is enough. We need to enforce rebates more on resale homes, due to the fact that new homes sales are generally to expensive to begin with. 

If you are thinking of purchasing a home, now may be the time to take advantage of this rebate and lowering home prices. You can contact us today or email [email protected] to see how you can take advantage of this rebate and help get you into a home! 


William Marlow

Founder of William Marlow Real Estate Team with RE/MAX Escarpment

Stoney Creek, ON