Understanding the New GST Housing Rebate in 2025
Buying your first home is exciting — but let’s be real, it can also feel a little overwhelming, especially when it comes to the fine print (hello, taxes). If you’ve been scrolling through listings and dreaming of keys in hand, there’s good news: the Canadian government recently rolled out a new GST housing rebate, and it could mean thousands of dollars back in your pocket.
We’re here to simplify what it means, who it’s for, and how you can make the most of it.
What is the GST Housing Rebate — and what changed in 2025?
Think of it as a refund on the GST (Goods and Services Tax) you pay when buying a newly built home. While rebates have existed for a while, the 2025 update expanded who qualifies — especially for first-time buyers trying to break into the market.
If your new home is priced up to $1 million, the full 5% GST can be rebated.
For homes priced between $1 million and $1.5 million, you may still get a partial rebate.
This change could help you save up to $50,000 on your home purchase. That’s no small number when you’re planning a big life step.
Who is eligible?
This rebate is tailored for first-time homebuyers, which means:
You must be 18 years or older
You haven’t owned a home (in Canada or anywhere else) in the past four years
You're buying a new or substantially renovated home
You plan to live in the home as your primary residence
Important: You must also be a Canadian resident when you buy and occupy the property. These are just some of the key eligibility points. If you’re unsure about where you stand, let’s talk — we’ll walk through it together.
How to apply for the rebate
Applying doesn’t have to be complicated. Here’s what the process generally looks like:
1. Purchase your new home
2. Fill out the application form:
Use CRA’s Form GST190 for most cases
If you are buying from a builder, they may apply on your behalf and credit the rebate at closing
3. Submit your claim within two years of your purchase closing
Don’t worry about the paperwork — we’ll guide you through the rebate process step by step and work closely with your lawyer to make sure it all gets filed smoothly.
What documents do you need?
Having these ready will make your life easier:
Signed Agreement of Purchase and Sale
Original Invoices in your name or your co borrower’s name.
Final Statement of Adjustments (from your lawyer)
Proof of occupancy (e.g., utility bills or change of address)
A completed GST190 form (or applicable form from your builder)
If your builder applied on your behalf, you might not need to file anything — but it’s always smart to double-check!
Let’s Discuss the Benefits of these Updates
This isn't just about a tax rebate—it's about reshaping the path to homeownership, especially for Canadians trying to break into the housing market. With the potential to save up to $50,000 in taxes, the new GST relief measures provide a significant financial boost for buyers of newly built homes. That kind of savings can go a long way—not just toward lowering your upfront costs but toward easing the long-term affordability of homeownership.
These rebates help remove one of the biggest financial barriers for buyers: the additional cost of GST on new construction. Traditionally, GST was added to the purchase price of most new builds, often pushing those homes out of reach for many. Now, with expanded rebate programs and targeted federal incentives, buyers may find themselves with greater access to modern, newly constructed homes, especially those focused on sustainability and energy efficiency.
This shift also reflects a broader policy goal: to encourage the development and purchase of greener housing. By offering GST relief on select projects—such as net-zero or energy-efficient homes—the government is incentivizing not just buying homes but building smarter for the future.
In essence, these programs are more than just financial perks—they are tools to make homeownership more accessible, inclusive, and future-ready. Whether you’re a first-time buyer, downsizing, or simply looking for a fresh start in a newly built home, GST incentives could be the key to unlocking your next chapter.
A few important things to keep in mind!
If the purchase price exceeds $1.5 million, you won’t qualify for the rebate.
You must move into the home yourself — this rebate isn’t for investment properties or rentals.
If you’re buying with a partner or co-buyer, both of you must meet the first-time buyer criteria.
The rebate applies to GST only, not to provincial sales tax (though some provinces, like BC, have their own programs too).
Let’s make your home goals happen
This new rebate is a huge win for first-time buyers, and it’s just one of many programs that can support you on your journey to homeownership. If you’re wondering how it fits into your mortgage plan, we’re here to help and provide necessary advice.
Want a custom breakdown of what you’d qualify for?
Book a quick call with us or shoot us an email at info@cefinancial.ca. Let’s put that rebate to work for you.
