Unlocking Homeownership: How the New GST Rebate Empowers First-Time Buyers in Canada
- Kristin J.
- 2 days ago
- 3 min read
As we move into 2026, it’s a great time for first-time home buyers to remember that the federal GST rebate is still available and can help make homeownership more affordable. Eligible buyers can save up to $50,000, depending on the home.
Buying your first home is a major milestone, but the costs involved can make it feel out of reach. The Canadian government has introduced a GST rebate aimed at easing this burden for first-time home buyers. Starting in June 2025, this rebate offers significant savings on new homes, making homeownership more affordable and encouraging new construction across the country.
This post explains how the new GST rebate works, who qualifies, and how you can benefit from it, especially if you are considering a new home built by Cedar Ridge Homes.
What the New GST Rebate Means for First-Time Buyers
The government announced on May 27, 2025, a new policy that changes how GST applies to new homes purchased by first-time buyers. Here’s what it offers:
0% GST on new homes priced up to $1 million
Reduced GST on homes priced between $1 million and $1.5 million
Potential savings of up to $50,000 on your new home purchase
This rebate is designed to reduce the upfront cost of buying a new home, helping first-time buyers enter the market with less financial pressure.
Who Qualifies for the GST Rebate?
To take advantage of this rebate, you need to meet a few simple criteria:
You must be 18 years or older
This must be your first home purchase
The home must be your primary residence
If you meet these conditions, you could save thousands on your new home purchase, especially if you choose a home from Cedar Ridge Homes.
How Much Can You Save? Real Examples
Our Cedar Ridge Homes team will stay up to date on all program details and help guide you through the process when it comes time to file your rebate.
A home priced at $599,900 including GST - with the current rebate in place, eligible buyers would pay approximately $571,333 depending on final calculations.
This means a n estimated savings of over $28,000 on the purchase price
These savings can make a large difference in your budget, allowing you to invest more in your new home or reduce your mortgage amount.
How to Claim the GST Rebate
Claiming the rebate is straightforward. When you file your taxes, you submit the government’s rebate form. Cedar Ridge Homes stays updated on all program requirements and will guide you through the process to ensure you receive your savings without hassle.
Building Your Personalized Home Without Paying GST
If you want a home tailored to your lifestyle, the GST rebate applies to personalized builds as well. We have an extensive library of floorplans, if we can't find a plan that works for you, let us create one - unique to your NEEDS, your LIFESTYLE, and your BUDGET.
Locations in desirable Lethbridge communities including the Crossings, Garry Station, Riverstone, Legacy Ridge, and The Canyons
A personalized building experience from lot selection to final finishes
Our dedicated full-time Designer will give you confidence, with unlimited hours of guidance and advice, making the selection process easy
Beautiful Showhomes to explore for inspiration
This rebate makes building your dream home more affordable by removing GST costs on the purchase price, helping you create a home that fits your needs and budget.
Why This Rebate Matters for First-Time Buyers
The new GST rebate is more than just a discount. It lowers the financial barriers that often discourage first-time buyers. By reducing the upfront tax on new homes, it:
Increases affordability and reduces mortgage debt
Encourages buyers to consider new homes, which tend to be more energy-efficient and modern
Supports the construction industry, helping communities grow with new housing options
For many Canadians, this rebate could be the key to finally owning a home.
Next Steps to Take Advantage of the GST Rebate
If you’re ready to buy your first home, here’s what to do next:
Check your eligibility based on age, first-time buyer status, and primary residence plans
Explore Cedar Ridge Homes’ quick possession and personalized options to find a home that fits your needs
Talk to the Cedar Ridge team about how the GST rebate applies to your purchase
Prepare to submit the rebate form when filing your taxes after buying your home
Taking these steps will help you maximize your savings and make your homeownership journey smoother.
Our custom build process is designed to walk you through every step of the build with ease and comfort. Click the button below and fill-out our form to start your journey today!
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