- The government is eliminating GST for first-time home buyers on new homes up to $1 million and reducing GST for homes between $1 million and $1.5 million.
- The FTHB GST Rebate allows savings up to $50,000 on a new home.
- Expected tax savings of $3.9 billion over five years starting in 2025-26.
- Eligibility for the rebate includes buying a new home from a builder, building a home on owned or leased land, or buying shares in a co-operative housing corporation.
- To qualify as a first-time home buyer, individuals must be at least 18, a Canadian citizen or permanent resident, and not have owned a home in the past four years.
- The rebate provides 100% GST rebate on new homes up to $1 million.
- The rebate phases out for homes between $1 million and $1.5 million, with no rebate for homes above $1.5 million.
- The rebate applies to homes purchased from a builder or owner-built homes.
- Purchase agreements must be made between May 27, 2025, and before 2031, with construction starting before 2031 and completion before 2036.
Source: canada.ca
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
