On May 27, 2025, Finance Minister François-Philippe Champagne tabled proposals for a new First-Time Home Buyers’ GST Rebate. First-time buyers could save up to $50,000 on a new home.
How it works
- Up to $1 million: together with the existing new housing rebate, 100% of the GST is rebated, up to $50,000.
- $1 million to $1.5 million: the rebate phases out in a straight line. A $1.25 million home gets 50%, up to $25,000.
- $1.5 million or more: no rebate.
- It applies to new homes bought from a builder, owner-built homes and co-op shares.
Who qualifies
A first-time buyer must be at least 18, a Canadian citizen or permanent resident, and must not have lived in a home they or their spouse owned in the current year or the previous four years. The home must be their primary residence, and they must be the first to live in it. The government expects $3.9 billion in tax savings over five years.
For a home bought from a builder, the rebate would generally apply to agreements signed on or after May 27, 2025 and before 2031, where construction begins before 2031 and the home is substantially completed before 2036. An individual could claim the rebate only once in their lifetime.
What it means in Calgary
Calgary’s April benchmark price was $591,100, well under the $1 million threshold, so many first-time buyers of new condos, townhomes and starter houses could get the full GST back. That makes new builds more competitive with resale homes.
Maximum first-time buyer GST rebate by home value
Rules that limit the rebate
The backgrounder sets out several limits. A buyer cannot claim if their spouse or common-law partner previously claimed the rebate. If a first-time buyer takes over another purchaser’s agreement through an assignment sale, the rebate is not available if that original agreement was signed before May 27, 2025. If an agreement signed before May 27 is cancelled and replaced with a new one, the rebate may be disallowed. A co-op share does not qualify if the co-op housing is eligible for the 100% GST rebate for purpose-built rental housing.
How it compares with existing help
The new rebate works together with the existing GST/HST New Housing Rebate and uses similar eligibility rules, with changes to target first-time buyers. The government says the goal is to lower the upfront cost of buying a new home for young Canadians and to spur construction of new homes across the country.
What it means for Calgary buyers
On a new $600,000 home, 5% GST is $30,000, so a qualifying first-time buyer would get back the full amount. In Calgary, where CREB reported an April benchmark of $591,100 and apartment benchmarks of $336,000, most new condos and townhomes fall well under the $1 million limit. The rebate applies only to new homes, not to resale homes.
What it means for sellers and builders
Resale sellers of condos and townhomes may face stronger competition from new projects, since first-time buyers can save thousands of dollars by choosing new construction. Calgary started 24,369 homes in 2024, according to CMHC, so many new units will reach the market over the next few years.
Practical takeaways
Check that you meet the first-time buyer test for the current year and the four previous years. Confirm the agreement date and the builder’s expected completion date. Keep in mind that these are legislative proposals, so follow the final rules before you sign.
For owner-built homes, the rebate would generally apply where construction begins on or after May 27, 2025 and before 2031, and the home is substantially completed before 2036.
The measure is expected to deliver its savings starting in 2025-26.
