The federal government has introduced a major new GST tax incentive for first-time home buyers in Canada that could return up to $50,000 when purchasing a newly built home.

For buyers in growing markets like Squamish, this rebate could meaningfully reduce the cost of entering the housing market—especially as new construction becomes a larger part of the local housing supply.

Here’s what buyers need to know.

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What Is the First-Time Home Buyers GST Rebate?

When you purchase a newly built home, the price typically includes GST (5%). The federal government’s new program allows eligible first-time buyers to recover some or all of that tax, depending on the price of the home.

The rebate can cover up to 100% of the GST paid, with a maximum rebate of $50,000.

This applies to:
    •    Newly built homes purchased from a builder
    •    Owner-built homes
    •    Substantially renovated homes

The property must be used as the buyer’s primary residence.

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How Much Could You Receive?

The rebate depends on the purchase price.

Homes priced up to $1,000,000
    •    Eligible buyers can receive 100% of the GST back, up to $50,000.

Homes between $1,000,000 and $1,500,000
    •    The rebate is gradually reduced.

Homes above $1,500,000
    •    No rebate is available.

Example

A buyer purchasing a $1.25 million new home could receive roughly half of the maximum rebate, or about $25,000 back.

That’s a meaningful reduction in the real cost of buying new construction.

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Why This Matters in Squamish

In markets like Squamish, most detached homes exceed $1.5 million, which means the rebate will not apply to many single-family properties.

However, it could significantly benefit buyers purchasing:
    •    New townhomes
    •    New condos
    •    Pre-construction units
    •    Smaller detached homes in new developments

These types of properties are increasingly common in Squamish as the community grows and densifies.

For buyers looking at new developments around areas like Downtown, Valleycliffe, or Garibaldi Estates, University Highlands, Skyridge (Terrain by Polygon) this rebate could offset a substantial portion of the GST typically built into the price.

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Who Qualifies?

To qualify for the rebate:
    •    You must be a first-time home buyer (generally meaning you have not owned and lived in a home within the last five years).
    •    You must be 18 or older.
    •    You must be a Canadian citizen or permanent resident.
    •    The home must be your primary residence.
    •    You must be the first person to live in the home.

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When Does the Program Apply?

The rebate applies to homes where:
    •    The purchase agreement is signed on or after March 20, 2025
    •    The agreement is signed before 2031
    •    Construction is completed before 2036

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How the Rebate Is Applied

In many cases, the builder applies the rebate directly at closing, reducing the amount of tax the buyer pays.

If the builder does not apply it, the buyer can apply to the Canada Revenue Agency directly after the purchase.

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The Bottom Line

For first-time buyers considering new construction, this rebate could reduce the real cost of purchasing a home by tens of thousands of dollars.

While it won’t affect resale homes, it may make new condos and townhomes in Squamish more financially accessible, particularly for buyers entering the market for the first time.

As new developments continue to expand in the Sea-to-Sky corridor, this program could become an important tool for first-time buyers planning their purchase strategy.

For futher details click here for the Governments website.

As always if you have any questions reach out to Mike Jones PREC* of Macdonald Realty in Squamish BC at (604) 815-2143 or mike@mikejonesrealty.com