Boost Your New Home Savings: Federal GST Rebate for First-Time Buyers
August 2025
Many Canadians are surprised to learn that the price they see for a new home typically already includes taxes, such as the Harmonized Sales Tax (HST)—which itself includes a 5% federal Goods and Services Tax (GST) portion. That means when you buy a new build, you’re likely paying thousands in federal tax even if it’s not clearly listed on your purchase agreement.
With that in mind, Canada’s federal government has unveiled a game-changing incentive for first-time buyers of newly built homes: a full or partial GST rebate worth up to $50,000. The new First-Time Home Buyers’ GST Rebate (FTHB GST Rebate) applies to agreements signed on or after May 27, 2025 and represents a major affordability boost for young families and newcomers eager to buy in vibrant communities like Lindsay.
Who Qualifies?
You may be eligible for the GST rebate if you:
- Are at least 18 years old and a Canadian citizen or permanent resident
- Have not lived in or owned a home—either on your own or with a spouse/common-law partner—in the year of purchase or any of the four preceding calendar years
- Plan to use the new home as your primary residence
Only one qualifying buyer on the agreement is required for the purchase to be eligible.
Which Homes Qualify?
The rebate applies to various types of new home purchases, including:
- Newly built homes purchased from a builder, including homes on leased land
- Owner-built homes, where construction is carried out by the buyer or a contractor
- Co-operative housing units, if the co-op has paid GST/HST on the new unit and the purchaser will use it as a principal residence
All homes at The Gateway of Lindsay would qualify for this rebate, making it an ideal community for eligible first-time home buyers.
How Much Can You Save?
- Homes up to $1 million: Eligible for a 100% rebate on GST paid, up to $50,000
- Homes between $1 million and $1.5 million: Rebate is gradually phased out. For example, a home priced at $1.25 million would receive a rebate of approximately 50%
- Homes priced at $1.5 million or more: Not eligible for the rebate
Important Dates
- Purchase agreement must be signed on or after May 27, 2025
- Home construction must begin by 2031 and be substantially completed by 2036
Mechanics Still Pending Disclosure
Although the Excise Tax Act amendments were tabled on May 27, 2025, the exact mechanics, application process, and CRA forms for accessing the rebate have not yet been released.
It's also important to note that the federal government has not yet confirmed whether this rebate will be applied pre-closing, at the time of closing, or issued post-closing as a refund. These administrative details are expected in upcoming regulations. In the meantime, eligible buyers who sign a purchase agreement dated on or after May 27, 2025, will still qualify for the rebate once the rules are finalized.
Sample GST Rebate Estimate for The Gateway of Lindsay
While we await final legislation, based on previous tax rebate structures in the new home industry, we can estimate how this new GST rebate might be calculated.
Let's take our Sturgeon Townhouse design, starting at $579,990. To estimate the GST-only rebate:
- Add $24,000 to the base price to account for the current HST rebate already built into the price, bringing the adjusted price to $603,990
- Remove the 13% HST to calculate the pre-tax amount
- Apply 5% GST to that base to estimate the rebate
- Subtract the GST rebate from the original purchase price to estimate your net price
Sample calculation:
- GST Savings = (($579,990 + $24,000) / 1.13) * 5%
- = ($603,990 / 1.13) * 5%
- ≈ $534,513 * 5% = ~$26,726
- Net Purchase Price After GST Rebate = $579,990 – $26,726 = ~$553,264
Disclaimer: This is a sample estimate based on past rebate structures and currently available information. The final rebate formula may differ once full legislation and CRA guidance are released. This example is for a home under $1 million; rebates for homes between $1 million and $1.5 million will be scaled down accordingly.
Why This Matters for Buyers at The Gateway of Lindsay
This rebate represents a meaningful financial boost for first-time buyers at The Gateway of Lindsay. With potential savings of up to $50,000, the incentive dramatically improves affordability—especially in a community already recognized for its exceptional value. The Gateway offers thoughtfully designed homes ideal for modern buyers, including multi-generational and income-style layouts. Whether you’re purchasing for your family or as part of a long-term plan, this rebate helps you make the most of your investment. It’s one more reason The Gateway of Lindsay continues to be one of Ontario’s most buyer-friendly new home communities.
Take Action Today
At The Gateway of Lindsay, we’re excited that this new federal rebate can significantly reduce the cost of your brand-new home. Whether you're looking for a townhome, bungalow, or a multi-generational/income property, this initiative makes first-time homeownership more accessible than ever.
Don’t miss out—if you're a first-time buyer with a signed agreement dated after May 27, 2025, you may already be on track to receive this rebate. For help selecting your new home or understanding your eligibility, our sales team is here to guide you every step of the way.
Reach out today and take advantage of this historic opportunity to save big on a new home at The Gateway of Lindsay.
For more information, visit the official Government of Canada backgrounder:
GST Relief for First-Time Home Buyers on New Homes Valued up to $1.5 Million
GST Relief for First-Time Home Buyers on New Homes Valued up to $1.5 Million
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