First-Time Home Buyers’ GST Rebate

First-Time Home Buyers’ GST Rebate 🏡

If you’re a first-time home buyer, you may be eligible for a GST rebate under the First-Time Home Buyers’ (FTHB) GST Rebate program.

This rebate is designed to help with the GST costs when:

• ✅ You buy a new home from a builder

• ✅ You build your own home (or hire someone to build it)

• ✅ You purchase shares in a co-operative housing corporation

The FTHB GST Rebate works similarly to the GST/HST New Housing Rebate, with modifications to ensure it targets true first-time buyers.

🧾 Eligibility: Who Qualifies as a First-Time Home Buyer?

You must:

• Be at least 18 years old

• Be a Canadian citizen or permanent resident

• Not have owned a home (or lived in a home owned by your spouse or common-law partner) in the calendar year or the 4 previous calendar years

💰 Rebate Amounts

• 100% GST rebate for new homes valued up to $1 million

• Linear phase-out for homes priced between $1 million and $1.5 million

  • Example: A $1.25 million home = 50% GST rebate (up to $25,000)

• No rebate for homes priced at $1.5 million or more

• Maximum rebate: up to $50,000

🏗️ Types of Eligible Purchases

1. New Homes Purchased from a Builder

• Rebate applies to GST or federal portion of HST paid

• Home must be:

  • Acquired as a primary residence

  • First occupied by the first-time home buyer

• Eligibility Dates:

  • Agreement of purchase: On or after May 27, 2025, and before 2031

  • Construction must begin before 2031 and be substantially completed before 2036

2. Owner-Built Homes

• Rebate applies to GST/HST paid to build the home

• Must be:

  • Built for primary residence

  • First occupied by the owner-builder

• Construction Timeline:

  • Start: On or after May 27, 2025, and before 2031

  • Completion: Before 2036

3. Shares of a Co-operative Housing Corporation

• Rebate applies to GST/HST paid by the co-op for new housing

• You must:

  • Acquire the share for primary residence

  • Be the first to occupy the unit

• Eligibility Dates:

  • Agreement of purchase: On or after May 27, 2025, and before 2031

  • Co-op construction must begin before 2031 and be substantially completed before 2036

• ❗ Not available if co-op housing qualifies for the 100% GST rebate for purpose-built rentals

🚫 Limitations & Restrictions

• 🔁 One-time use only: You can only claim the FTHB GST Rebate once in your lifetime

• 💑 If your spouse or partner already claimed the rebate, you cannot

• 📝 Assignment Sales: No rebate if the original agreement was signed before May 27, 2025

• 🧾 Revised or cancelled agreements:

  • If an older agreement is cancelled and re-written after May 27, 2025, you may not qualify

If you're considering buying or building a new home and believe you qualify, this rebate could significantly reduce your upfront costs. Be sure to consult with a professional (like your local real estate expert… hi there! 👋) to confirm your eligibility and get the most out of your purchase.

Jeffrey Sefton
Okanagan Home Team - Real Broker
okanaganrealestatesearch.com