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Understanding the First-Time Home Buyer GST Rebate in Canada
Understanding the First-Time Home Buyer GST Rebate in Canada
Buying your first home is a major milestone—and now, there’s a new federal program designed to make that step more achievable.
The First-Time Home Buyer (FTHB) GST Rebate can significantly reduce the cost of purchasing a new home, with potential savings of up to $50,000.
And at McKee Homes, there’s even more opportunity.
Through our Spring into Your Next Chapter Promotion, buyers can receive an additional 5% in savings—which can be combined with the federal rebate.
For eligible first-time buyers, that means up to 10% in total savings on your new home.
What is the First-Time Home Buyer GST Rebate?
The FTHB GST Rebate is a federal program that eliminates or reduces the GST (5%) on qualifying new homes for first-time buyers.
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Homes up to $1 million → 100% GST rebate
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$1 million to $1.5 million → Partial rebate (phased out)
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$1.5 million+ → No rebate
It’s designed to make homeownership more accessible by lowering upfront costs and improving affordability.
Who is Eligible?
To qualify, buyers must:
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Be a first-time home buyer
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Be purchasing a new or substantially renovated home
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Intend to use the home as their primary residence
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Be an individual (not a corporation)
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Meet all CRA requirements for the rebate
This applies whether you’re buying from a builder, building yourself, or purchasing a qualifying new home.
Important Dates & Eligibility Timeline
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Purchase agreements must be signed on or after March 20, 2025
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Agreements must be signed before 2031
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Construction must begin before 2031 and be completed before 2036
If you’ve purchased within this window, you may be eligible—even if your rebate hasn’t yet been applied.
How Much Could You Save? (Example)
Let’s look at a real scenario:
Without promotions:
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Purchase price: $800,000
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GST (5%): $40,000
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FTHB Rebate: $40,000 back
With McKee Homes promotion:
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Additional 5% savings: $40,000
Total potential savings:
👉 Up to $80,000 in combined savings
That’s a meaningful difference—giving you more flexibility for your down payment, upgrades, or long-term financial comfort.
How the Rebate Works with Builders
One of the biggest advantages of this program is how simple it can be.
Going forward:
Builders like McKee Homes can apply the rebate on your behalf and credit it directly into your purchase price.
This means:
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Lower upfront costs
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A smoother buying process
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Immediate access to your savings
And when combined with our current promotion, those savings can be built directly into your home purchase from day one.
What If You’ve Already Purchased?
If you purchased early in the rollout of this program, you may need to apply for the rebate yourself.
Steps to apply:
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Complete the appropriate CRA GST rebate application forms
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Gather required documents:
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Purchase agreement
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Closing/ownership documents
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Proof the home is your primary residence
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Submit your application to the Canada Revenue Agency (CRA)
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Receive your rebate after processing
In most cases, applications must be submitted within 2 years of possession.
Why This Program Matters
This rebate is a meaningful step toward improving housing affordability—especially for first-time buyers.
When combined with McKee Homes’ Spring into Your Next Chapter Promotion, it creates a unique opportunity to:
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Reduce upfront costs
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Increase purchasing power
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Enter the market with more confidence
Looking Ahead
While this program is a strong step forward, there is growing support across the industry to expand GST relief to all buyers.
At McKee Homes, we believe broader eligibility would:
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Support move-up buyers
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Help downsizers transition more easily
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Improve overall housing accessibility
We’re proud to advocate for solutions that make homeownership more attainable for more Canadians.
Start Your Next Chapter with McKee Homes
This is a rare moment where federal incentives and builder promotions align.
With up to 10% in combined savings available to eligible first-time buyers, there’s never been a better time to explore your options.
Build with McKee Homes and take advantage of every opportunity available to you.
Your next chapter starts here—and we’re ready when you are.
