First-Time Homebuyers: The GST Rebate on New Builds Explained

a day ago

3 min read

Buying your first home in Canada just got a whole lot more affordable — especially if you're considering a newly built property.

The federal government has introduced a new GST rebate that could put up to $50,000 back in your pocket if you're a first-time homebuyer. At Swivel Mortgage Group, we're breaking it all down for you — no confusing financial speak, just straight-up facts and money-saving opportunities.

What Is the GST Rebate for New Homes?

On June 5, 2024, the federal government proposed legislation to eliminate the 5% GST on newly built homes priced up to $1 million — but only for first-time homebuyers.

Here’s what that means for you:

Buying a new or substantially renovated home for $1M or less? You could save $50,000 instantly.
If the home price is between $1 million and $1.5 million, you’ll still get partial savings, thanks to a phased-out rebate.

This could lower your monthly mortgage payment by up to $240 and reduce the amount of your down payment, making homeownership more accessible.

Important Dates You Should Know

To qualify for the rebate:

The purchase must be made between May 27, 2024, and 2031
Construction must start before 2031 and finish by 2036

So yes — it’s in effect now, and there's plenty of time to take advantage, but it won’t last forever.

How Much Can You Save? (Especially If You’re Buying Between $1M–$1.5M)

Here’s a quick breakdown of how the phased rebate works:

🏠 Home Price	💸 GST Rebate %	💰 Rebate Amount	🔖 GST Owed
$1,000,000	100%	$50,000	$0
$1,100,000	80%	$40,000	$10,000
$1,200,000	60%	$30,000	$20,000
$1,300,000	40%	$20,000	$30,000
$1,400,000	20%	$10,000	$40,000
$1,500,000+	0%	$0	$50,000

That’s real cash you won’t have to borrow — or pay interest on.

Why This Matters (Especially in Toronto & Vancouver)

Let’s be honest: first-time buyers in Toronto, Vancouver, and other high-priced markets have been hit hard. But this rebate could offer some much-needed breathing room.

According to Desjardins, nearly 85% of new homes across Canada will qualify for full or partial rebates, including:

✅ 92% of new builds in Toronto
✅ 75% of new builds in Vancouver

This could help revive the softening condo market and help you enter the market with significantly lower upfront costs.

Real-Life Example: What This Looks Like for You

Say you're buying a brand-new condo in Toronto for $1,000,000.

Without the rebate: You’d pay $50,000 in GST, possibly adding that to your mortgage.
With the rebate: That $50,000 is erased.

At a mortgage rate of 4.19% over 25 years, that’s about $240/month in savings. Over time, this means:

✅ Lower monthly payments✅ Faster equity building✅ Less interest paid over the life of your loan✅ More room in your budget

What If You Already Own? Refinance and Save More

Already a homeowner? With rates still relatively high, refinancing could also help you make the most of your equity.

Whether you’re looking to:

Pay off high-interest debt
Lower your monthly obligations
Fund a home renovation or investment
Switch to a better rate or term

We’ll run the numbers for you to see if refinancing makes sense — no guesswork, just facts.

What to Do Next

The GST rebate is here, it's real, and it can make a huge difference — whether you’re buying your first place or reviewing your current mortgage strategy.

At Swivel Mortgage Group, we’ll help you: