First Time Home Buyer GST Rebate 2025: Government Initiative to Support FTHB in Canada

First Time Home Buyer GST Rebate 2025: Changes are being made to make the policies work smoothly. Now everything is under in changing mode. The Canadian govt. has proposed amending the Excise Tax Act to establish the FTHB GST, a new Goods and Services Tax refund for first-time homebuyers on May 27, 2025. Via this scheme the govt. is trying to encourage people to buy new and affordable houses. The new federal govt. has proposed this scheme.

FTHB GST Rebate 2025 – Overview

The FTHB GST Rebate is a shiny new program designed to ease the financial sting of buying a newly built home. If you’re a first-time homebuyer, you could save up to $50,000 on the Goods and Services Tax (GST) (or the federal portion of the Harmonized Sales Tax (HST) in some provinces) when you buy a new home.

That’s right. The government expects this program to deliver $3.9 billion in tax relief over five years, starting in the 2025-26 fiscal year. It’s not just about helping buyers; it’s also about encouraging builders to construct more homes, which could help tackle Canada’s housing shortage.

How to Apply for the FTHB GST Rebate

• Make sure you meet the criteria (18+, Canadian citizen or permanent resident, first-time buyer, etc.).

• Sign a purchase agreement for a new home or start building on or after May 27, 2025. Ensure the home will be your primary residence.

• If the builder doesn’t apply the rebate for you, you’ll need to submit a form to the Canada The exact form isn’t out yet, but it’ll likely be similar to the existing GST/HST New Housing Rebate form. Keep all your paperwork—purchase agreements, construction receipts, and proof of GST/HST paid.

• Once approved, you’ll get your rebate as a refund, up to $50,000, depending on the home’s price.

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FTHB GST Rebate at a Glance

Important Dates and Deadline

Timing is everything with this rebate. Here’s when things need to happen:

Importance of FTHB GST Rebate in 2025

• The introduction of this rebate is to help the buyers in purchasing their own house by offering them a rebate of $50000 if they are new buyers.
• This rebate is only applicable to the buyers who have signed the agreement after May 27, 2025.
• After this initiative some of them will try to cancel the agreement to make themselves qualify to get the rebate, but in this case the builders have to be cautious.

Eligibility For FTHB GST Rebate in 2025

• There are certain eligibility requirement to avail the FTHB GST Rebate. Every criteria is different than others.
• The Buyer has to eligible for certain criteria to avail the rebate.
• He/ She has to be at least 18 years old.
• He/ She has to be a Canadian citizen or a permanent resident
• He/ She has to be a new buyer that he/she has to buy the house for the first time.

House FTHB GST Rebate in 2025

• Not every house can be applicable for the rebate. There are some requirements that what type of homes should be purchased:
• Just a brand-new home purchased from a builder.
• If the buyer has own land or a leased land then of the house is constructed on that land will also be eligible.
• If a buyer is having shares in a co-operative housing corporation

Purchase timing or Date of agreement

• The agreement of sale or purchase must have been done after 27^th May and before 2031.
• The construction process has to be start before 2031 and should be end before 2036.
• Transfer of the ownership is necessary. The home should be transferred on the name of the buyer before 2036.
• The buyer has to be the first person to stay in self purchased home.

FTHB GST Rebate in 2025-Amount

• For a home worth $1 million, the rebate will cover 100% of the GST or HST up to $50,000.
• The rebate amount will be lower eventually for the homes priced between $1,000,001 and $1, 499, 999.
• For the houses valued at $1.5 million and higher there is no rebate applicable.

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FTHB GST Rebate in 2025- Limitations

• This rebate is mean for the first buyers but there are some exceptions.
• This buyer is only eligible to receive the rebate once.
• If the applicant is married and his/her spouse has already claimed the benefit then the other person cannot avail it.
• The claim request will not be accepted if the date of agreement was signed before 27^th of May.

Conclusion: First Time Home Buyer GST Rebate

There are certain exception, you have to remember that not all buyers can avail the rebate. When the news was declared that the govt. will abolish the GST for the new buyers, everyone has got elated. The announcement was done on 20^th March, 2025. The new buyers who have done the contract with the builder after the declaration will not be eligible for the rebate. Canada Revenue Agency will minutely check the details before giving the approval to be eligible for rebate. If a buyer will buy a two bedroom house instead of one bedroom, then he/she will qualify for the rebate if the buyer needs the extra space for their growing family.

FAQs about First Time Home Buyer GST Rebate