Buying your first home is a monumental step, but the financial hurdles can be daunting. The good news is, a new federal initiative is on its way to help. As part of Bill C-4, the government has proposed a new GST/HST rebate specifically for first-time home buyers. This is a direct response to calls from the housing industry and the public to make homeownership more affordable.
What is the New Rebate?
This rebate is a significant financial break on the purchase of a newly constructed home. It offers a 100% rebate on the GST, which is the federal portion of the HST, for new homes priced up to $1 million. For homes priced between $1 million and $1.5 million, a partial rebate will be available. This initiative is designed to not only help buyers but also to encourage new housing construction.
Are You Eligible?
To take advantage of this rebate, you must meet a few key requirements:
The new home's purchase agreement must have been signed on or after April 1, 2024.
Construction on the home must have been at least 90% complete on or after that date.
You must be a first-time home buyer, and you must be the first occupant of the home.
The eligibility is also extended to co-buyers, meaning as long as at least one person on the purchase agreement is a first-time buyer, you qualify.
How Do You Get the Rebate?
The process depends on whether or not the legislation has received Royal Assent.
If the bill has passed, you can claim the rebate through your builder, who will deduct it directly from the purchase price.
If the bill has not yet passed, you will need to apply for the rebate directly from the government once the legislation is in force.
The Canadian Real Estate Association (CREA) is strongly advocating for the swift passage of this bill, recognizing it as a positive step toward addressing housing affordability. This new rebate could be a game-changer for many aspiring homeowners, potentially making the dream of owning a new home a reality sooner than you think.
