GST relief for first-time home buyers on new homes
May 28, 2025
Global Korean Post
–
To lower the upfront cost of buying a new home for young Canadians and spur the construction of new homes across the country, the government is eliminating the Goods and Services Tax (GST) for first-time home buyers on new homes up to $1 million and reducing the GST for first-time home buyers on new homes between $1 million and $1.5 million.
On May 27, 2025, the Minister of Finance and National Revenue, François-Philippe Champagne, tabled legislative proposals to amend the Excise Tax Act to introduce a new GST rebate for first-time home buyers (the “FTHB GST Rebate”).
As a result of this rebate, first-time home buyers will be able to save up to $50,000 on a new home.
This measure is expected to deliver $3.9 billion in tax savings to Canadians over five years, starting in 2025-26.
