Good news for first-time buyers: the GST Rebate on new and substantially-renovated homes is now in force.

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Originally announced last spring, the legislation received Royal Assent and came into force last week. It eliminates GST on new and substantially-renovated homes priced up to $1 million and provides a reduced GST amount for homes between $1 million and $1.5 million. Eligible individuals could get a GST rebate of up to $50,000.00 on their new home purchase. The Canada Revenue Agency can now begin processing rebate claims.

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The rebate generally applies to contracts entered into on or after March 20, 2025 and before 2031. If you are a first-time buyer and purchased a new or substantially renovated home under $1.5 million since March 20, 2025, now is the time to ensure you apply. There is a time limit to apply for the rebate; usually it is within 2 years of taking ownership or finishing construction.

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As a builder, you can let any first-time home buyers know that they may be eligible for the GST rebate if they entered an agreement to purchase a home from you on or after March 20, 2025.  You can credit the buyer for the rebate at closing for eligible buyers and submit the jointly-completed rebate application form to CRA. As you could not credit the rebate to Buyers until the new bill received Royal Assent, eligible first-time home buyers who purchased a unit before the new law came into force can apply directly to the CRA to receive the GST rebate.

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Realtors and mortgage brokers should check in with any of their clients who may qualify as well.

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