🏡 New GST Rebate on New Homes in Canada: What First-Time Buyers Need to Know
In a bold move to improve housing affordability, the Canadian government has introduced a full GST rebate for first-time homebuyers purchasing newly built homes under $1 million. This rebate could save qualified buyers up to $50,000—a major financial boost in today’s housing market.
Let’s break down what this new GST rule means, who qualifies, and how it impacts buyers across Calgary’s inner-city real estate market.
🔍 What Is the New GST Rebate on New Homes?
Starting May 27, 2025, eligible first-time buyers will receive:
• ✅ 100% GST rebate on new homes priced at $1 million or less
• ✅ A partial rebate on homes between $1 million and $1.5 million
• ❌ No rebate on homes above $1.5 million
This rebate applies to newly constructed homes, including:
• Pre-construction homes purchased directly from builders
• Owner-built homes
• Shares in co-operative housing developments
If you’re buying in the Calgary infill or new condo market, this could drastically reduce your upfront
👤 Who Qualifies as a First-Time Homebuyer?
To access the GST rebate, buyers must:
• Be 18 years or older
• Be a Canadian citizen or permanent resident
• Not have owned a home in the past 4 years
The property must be your primary residence—investment properties do not qualify.
➡️ Looking to learn more about qualifying as a first-time buyer? Check out our First-Time Buyer’s Guide
📈 How This Impacts the Calgary Real Estate Market
This policy is expected to stimulate demand in the new home construction market, particularly in high-demand areas like in all communities across Inner City
Buyers who were priced out by closing costs or GST now have a fresh opportunity to get into the market.
⏳ Timeline: When Does the GST Rebate Apply?
Your home must meet all of the following to qualify:
• Agreement signed on or after May 27, 2025
• Construction starts before 2031
• Project completed before 2036
Homes signed for before the May 27 start date—even if reassigned—do not qualify.
🧾 How Much Can You Save?
Let’s do the math:
• Home Price: $950,000
• GST (5%): $47,500
• Rebate: $47,500 saved (100%)
Even a partial rebate on a $1.3M home would save you over $30,000—money that could be used for furnishing, renovations, or mortgage payments.
💡 Why This Matters for Inner-City Buyers
In Calgary’s City Centre, where new homes often sit in the $800K–$1.5M range, this rebate could tip the scales for many first-time buyers.
Whether you’re eyeing a luxury infill in South Calgary or a new-build condo in Kensington, this new GST rebate gives you more purchasing power.
📞 Thinking About Buying a New Home?
If you’re a first-time buyer looking to take advantage of this new rebate, I can help you:
• Find eligible homes in inner-city Calgary
• Connect with builders offering qualifying units
• Navigate the paperwork and tax process
• Access the best mortgage options for new construction
Start your home search here to explore the latest inner-city listings.
Request a personalized selling consultation and discover what your home could be worth today.
🔚 Final Thoughts
The new GST rebate is more than a tax cut—it’s a strategic opportunity to step into Calgary’s inner-city housing market with confidence. With proper guidance, you can save thousands and make a smart, future-focused investment.
Dylan Kisilowski
Inner-City Calgary Real Estate Specialist
Century 21 Bamber Realty
403-371-1196 |
