May 28, 2025 – Toronto, Ontario – iCommission
In a move that could transform the Canadian housing landscape, the federal government has introduced a groundbreaking GST rebate for first-time home buyers. This measure is designed to ease the financial burden on young Canadians looking to buy their first home, and it’s poised to stimulate the construction of new housing across the country.
For real estate professionals, understanding the details of this new policy is critical to better serving clients and closing more deals in a shifting market.
What’s New?
Effective May 27, 2025, the government is offering:
A full GST rebate on new homes priced up to $1 million for first-time home buyers.
A partial rebate, phased out linearly, for new homes priced between $1 million and $1.5 million.
No rebate for homes priced at or above $1.5 million.
This initiative could deliver up to $50,000 in tax savings per qualifying home purchase and is expected to result in $3.9 billion in total tax relief over the next five years.
Who Qualifies?
To be eligible for the First-Time Home Buyers' GST Rebate (FTHB GST Rebate), the buyer must:
Be 18 years or older
Be a Canadian citizen or permanent resident
Not have owned a home in Canada or abroad, or lived in a home owned by a spouse or partner, during the calendar year or the past four years
What Types of Homes Qualify?
First-time home buyers may be eligible for the FTHB GST Rebate if they:
- Purchase a new home from a builder, including those built on leased land;
- Build a home themselves or hire someone to build one on land they own or lease; or
- Buy shares in a co-operative housing corporation, where the co-op has paid GST or the federal portion of the HST on new housing.
In all cases, at least one buyer must meet the eligibility criteria as a first-time home buyer and must use the home as their primary place of residence. The individual must also be the first occupant of the home.
Key Conditions
The agreement of purchase and sale must be entered into on or after May 27, 2025, and before 2031
Construction must begin before 2031 and be substantially completed by 2036
At least one buyer must qualify as a first-time home buyer and must be the first to occupy the property as their primary residence
What This Means for Realtors
With this new rebate in place, buyers on the fence may be more motivated to enter the market. Realtors can use this opportunity to:
Educate first-time buyers on potential savings
Highlight qualifying homes that fall within the rebate threshold
Partner with mortgage advisors and builders to streamline rebate qualification
At iCommission, we understand that every delay in closing or buyer hesitation can impact your cash flow. That’s why we continue to offer fast, flexible commission advances—so you can focus on helping clients take advantage of programs like this without financial stress.
About iCommission
iCommission is Canada’s leading commission advance provider, helping real estate agents access their hard-earned commissions before closing. With a reputation for fast approvals and personalized support, iCommission empowers agents to grow their business and stay financially agile.
For more updates and insights, visit www.icommission.ca.
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