???? New First-Time Buyer GST Rebate — Will It Really Help?

The federal government recently announced a new GST rebate aimed at helping first-time home buyers get into the market — but is it really the game-changer it sounds like? ????
Let’s take a look at what it offers — and where it falls short.

???? What is the incentive?

If you’re a first-time buyer and you buy a newly built home, you could get back the full 5% GST — up to $50,000 in savings.

✅ Applies to new builds up to $1 million
✅ Partial rebate between $1 million and $1.5 million
✅ Only for first-time buyers
✅ Home must be purchased after May 27, 2025

Sounds great on paper, right?

???? The Pros

Reduces upfront costs for first-time buyers — which can help with closing costs or stretching your budget.
Encourages more new homes to be built — by driving demand for new construction.
Could help some buyers get off the sidelines and take the plunge into homeownership.

???? The Cons

Limited audience — this only helps first-time buyers of new homes — which is a small slice of the market. It does nothing for resale buyers.
Possible price inflation — many experts warn that builders may simply raise prices to “absorb” the rebate, meaning buyers won’t see much real savings.
Doesn’t address supply — Canada’s core housing problem is a lack of supply, especially affordable homes. This rebate won’t solve that.
Won’t help in high-cost markets — In many big cities, homes under $1 million are increasingly rare — meaning the rebate won’t apply to many first-time buyers.

???? So... Is It That Good?

It’s a helpful start — but on its own, this rebate won’t fix housing affordability.

Yes, it can help some buyers save money. But without addressing supply and without making sure builders don’t just raise prices, its real impact may be limited.

If you’re thinking about buying, it’s smart to stay informed — and to have someone on your side who can help you navigate the fine print.

Want to know if this rebate could work for you? Curious how it might affect our local market?

I’d be happy to chat — send me a message anytime!

David LaPointe