May 30, 2025
You don’t have to be buying your first home to be a “first-time homeowner”
The Canada GST New Housing Rebate is not exclusive for someone buying their first home. In reality, this federal program is accessible to a broader range of individuals, including those who have previously owned a home, provided certain conditions are met.
Not Just for First-Time Buyers
The rebate is not limited to first-time homebuyers. Individuals who have previously owned a home can also be eligible, provided they meet the program’s criteria.
If you are separated or divorced from a former spouse and are no longer in a common dwelling, you could qualify as a “first-time home buyer”!
Did you sell your home over 4 years ago? Maybe you rented after selling up, or lived with family? If you have not been a homeowner you can qualify as a “first-time homebuyer!
Considerations for Co-Ownership
If you’re purchasing a home with another individual, it’s important to note that all co-owners must intend to use the property as their primary residence. If any co-owner does not plan to reside in the home, the entire rebate may be denied.
May 27, 2025
Key Details:
Rebate Amount: Up to $50,000 of the federal GST/HST.
Eligibility:
– Buyer must be a first-time home buyer.
– The home must be a primary residence, and the buyer must be the first occupant (not an investor home)
– Applies to new homes from builders, custom builds, or co-operative housing shares.
Home Value Limits:
– 100% rebate for homes up to $1 million.
– Phased out between $1 million–$1.5 million (e.g., 50% rebate for a $1.25M home).
No rebate above $1.5 million.
Timeline:
– Purchase agreement must be signed on or after May 27, 2025, and before 2031.
– Construction must begin before 2031 and be substantially completed before 2036.
CHBA Response:
CHBA applauded the move as a major win but continues to advocate for:
Extending the rebate to all buyers, including move-up buyers.
Inclusion of Accessory Dwelling Units (ADUs) and secondary suites.
Applying the rebate to homes not yet closed, to include buyers with existing agreements awaiting possession.
Next Steps:
The measure was introduced via a Ways and Means Motion and is expected to pass easily in the House of Commons.
CHBA will continue to lobby for broader eligibility and refinements to the rebate structure.
This policy is expected to stimulate home buying and new construction, particularly benefiting first-time buyers and boosting housing supply.
Stay Tuned for updates on the GST Rebate Program. To sign up for Financial Updates as we get them, fill out the form below:
