If you’re a first-time home buyer in Canada, May 27, 2025 could become a milestone date for you. The federal government has announced a major housing affordability initiative that could save you up to $50,000 on your first home!

This new GST relief program is aimed at making homeownership more attainable, particularly for Canadians entering the housing market for the first time. Here’s everything you need to know about this game-changing update.

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What’s Changing?

As of May 27, 2025, first-time home buyers will be exempt from paying the GST (Goods and Services Tax) on newly built homes priced up to $1 million. For homes priced between $1 million and $1.5 million, a partial 50% rebate will apply.

This initiative could mean up to $50,000 in savings, depending on the price of your new home — a significant financial relief at a time when housing affordability remains top of mind for many Canadians.

Who Qualifies?

To benefit from this program, here are the key eligibility requirements:

• First-Time Home Buyer: You must be purchasing your first home.

• Primary Residence: The home must be intended to be your primary place of residence.

• New Builds or Owner-Built Homes: The GST exemption applies to brand-new homes or homes that you build yourself.

• One-Time Claim: You and/or your spouse or partner can only claim this exemption once.

• Price Limits:
• Full rebate on homes up to $1 million.
• Partial rebate (50%) on homes between $1 million and $1.5 million.

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What Does This Mean for You?

This is a significant development for anyone looking to enter the housing market. For many first-time buyers, the GST is a substantial additional cost on top of the purchase price of a home. By removing this tax, the government is essentially helping reduce the upfront cost of homeownership, making the dream of owning a home more achievable.

Here’s a rough idea of what the savings could look like: