Bill C-4 has officially passed, introducing a new federal GST rebate that could save eligible buyers up to $50,000 on a newly built home.
Whether you're exploring quick possession options or looking to build from the ground up, here's what you need to know.
How the Rebate Works
When you purchase a newly built home in Canada, the federal 5% GST normally applies to the purchase price.
Under the new program, eligible first-time buyers can receive a rebate that returns that tax.
Full rebate on homes priced at $1 million or less, up to $50,000 back
Partial rebate on homes priced between $1 million and $1.5 million
No rebate on homes priced above $1.5 million
In simple terms, the lower the purchase price, the more GST you get back.
Do You Qualify?
To qualify for the rebate, both the buyer and the property must meet the program's requirements.
Buyer Criteria:
Canadian citizen or permanent resident
18 years of age or older
Have not owned or lived in a home owned by you or your spouse/common law partner in the past four calendar years
Purchasing the home as your primary residence
First occupant of the home
This rebate can be claimed only once per household.
Property Criteria:
Newly constructed and unoccupied
Purchased from a builder, custom-built on land you own or lease, or a new unit in a housing co-operative
Resale homes do not qualify
Qualifying property types include detached homes, townhomes, duplexes, condominiums, and co-op units, provided they are new and unoccupied at the time of sale.
Timing Requirements
To be eligible, your home purchase must meet the following federal timelines:
Purchase agreement signed on or after March 19, 2025 and before January 1, 2031
Construction begins before January 1, 2031 and be substantially completed before December 31, 2035
What the Rebate Can Do For You?
Buyers still need to qualify for the full purchase price including GST at the time of purchase. Once the rebate is received, however, that money can be used however it makes the most sense.
However you choose to use it, this rebate can make a meaningful difference.
Now that the legislation has passed, the CRA will be releasing the official process for claiming the rebate.
If you are considering buying a new home and want to know whether you qualify, our team would be happy to walk you through the details and help you understand what this could mean for your purchase.
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