Gst Help For First-time Buyers Now A Reality!

On May 27^th, the Minister of Finance and National Revenue tabled legislative proposals to introduce a full GST rebate (named the “FTHB GST Rebate”) for qualified first-time home buyers on new homes up to $1 million, as well as reducing the GST for qualified first-time buyers on new homes between $1million and $1.5 million (https://bit.ly/450QF38). This news from the Department of Finance Canada offers hope for young Canadians by lowering the upfront cost of purchasing a new home, making it possible for first-time home buyers will be able to save up to $50,000 on a new home. This announcement is also a plus for developers and builders by spurring new home construction across the country.

To claim the GST rebate, the agreement of purchase and sale for the home must be entered into with the builder on or after May 27, 2025 and before 2031. In addition, construction of the home must begin before 2031, and the home must be substantially completed before 2036. To qualify as a first-time home buyer, one must be at least 18 years old; be a Canadian citizen or permanent resident of Canada; not have lived in a home, whether in or outside Canada, that they owned or that their spouse or common-law partner owned in the calendar year or in the four preceding calendar years; and must be the first individual to occupy the home as a residence. At least one of the purchasers would have to satisfy these criteria. Other stipulations apply.

This is a critical first step toward addressing our housing affordability crisis, and I applaud the government for acting so quickly. In the future, we need more programs like this. One suggestion is to eliminate the GST on all new home purchases, regardless of price and whether the buyers are new to homeownership or seasoned homeowners. Let’s get consumer confidence on the front burner again!