Introduction In a major affordability boost, the Canadian federal government announced on May 27, 2025 a sweeping GST rebate that effectively eliminates the 5% federal GST on the purchase of new homes priced up to $1 million for eligible first-time home buyers . This is not just a partial refund - it’s a full exemption of GST up front for most first-time buyers on new construction. What Is the New FTHB GST Rebate? Full 5% GST exemption on new homes valued at $1 million or less (savings of up to $50,000). Partial exemption for homes valued between $1 million and $1.5 million - rebate phases out linearly so a home at $1.25 million would qualify for about a 50% rebate (roughly $25,000). No rebate on homes valued at or above $1.5 million .  Who Qualifies? To be eligible, buyers must meet common-sense criteria: Be 18 or older, a Canadian citizen or permanent resident. Have never owned a home - in Canada or abroad - in the current year or the four previous years (inc...