June 24, 2025
On May 27, 2025, the Federal Government issued a press release that provides for a Goods and Services Tax (“GST”) rebate for first time home buyers (FTHB) of new homes (and co-ops). The press release indicates that the Excise Tax Act will be amended to provide FTHB with a full GST rebate on homes under $1,000,000, and a partial rebate on homes between $1,000,000 and $1,500,000.
Subject to agreement with the Builder, a FTHB will pay the GST on the closing of a purchase of a qualifying home, but will be eligible for a rebate of the full amount (up to $50,000). The rebate is phased out in a linear manner from $1,000,000 to $1,500,000. So, for example, a home that is $1,400,000 would lose 80% of the rebate – in other words, it would still be eligible for a 20% ($10,000) rebate.
As the legislation has not yet been passed (and the devil is in the details), there are many questions we are unable to answer at this time. Below are some frequently asked questions we received, together with answers based on available materials. We will continue to provide updates as more details emerge.