The first-time buyer GST rebate is now in effect, and it can lower the cost of a new home by up to $50,000.
Because it targets new builds and major renovations, it may shift demand in East Toronto real estate, especially for condos and townhomes.
What is the first-time buyer GST rebate?
The first-time buyer GST rebate removes the GST, or the federal portion of HST, on eligible new homes.
If the purchase price is $1 million or less, the rebate can cover up to 100% of the GST portion, to a $50,000 maximum.
If the price is between $1 million and $1.5 million, the rebate scales down.
However, at $1.5 million and above, there is no rebate.
Who qualifies for the first-time buyer GST rebate?
In general, you must be at least 18 and a Canadian citizen or permanent resident.
Also, you and your spouse or partner cannot have owned a home in the prior four calendar years.
You must use the home as your primary residence, and it must be a new build or substantially renovated home.
How buyers can use the savings
First, ask your builder or sales rep how the rebate will be applied at closing.
Next, run the numbers on your monthly payment, since the rebate can reduce the total you finance.
For example, some buyers may upgrade location, layout, or parking with the same budget.
Meanwhile, the rebate can make pre-construction timelines feel more worthwhile.
What sellers in East Toronto real estate should know
More buyers may compare resale homes against new builds that now feel “discounted.”
Therefore, resale sellers should sharpen pricing and presentation from day one.
Also, highlight renovations that reduce a buyer’s future costs, like windows or a roof.
However, note that the rebate applies to new builds and major renovations, not standard resales.
If new-build interest rises, some resale segments could see longer decision cycles.
What to watch next in Ontario
Ontario has discussed additional HST relief for first-time buyers, which could add to federal savings.
In addition, housing starts data will influence how much new supply actually arrives.
The first-time buyer GST rebate changes the math for many new-home shoppers.
As a result, both buyers and sellers in East Toronto real estate should plan around this new advantage.
Looking for more info on this incentive? Contact us today, we can help you navigate and access many other incentives and programs.
