If you are purchasing a brand new home as your primary residence, you may now qualify for a full or partial GST exemption depending on the purchase price.
GST on a new build is 5%, so typically:
$1,000,000 purchase = $50,000 GST
$900,000 purchase = $45,000 GST
Until recently, most buyers only received a small rebate capped around $6,000, so the majority of that cost still applied.
Under the new structure:
Up to $1,000,000 purchase price
Eligible first-time buyers can receive 100% of the GST back
Between $1,000,000 and $1,500,000
The rebate phases out gradually
Over $1,500,000
No rebate applies
Example:
A new condo purchased at $950,000 would normally include approximately $47,500 in GST
With the updated rules, a qualifying buyer could recover nearly all of that amount, effectively reducing the true cost of the purchase
At $1,200,000, the GST would be $60,000
With a partial rebate, this could result in roughly $36,000 in savings, depending on eligibility
There are still conditions, including qualifying as a first-time buyer and using the property as your primary residence, so it does not apply in every scenario.
For buyers considering new construction, this change meaningfully shifts the numbers and, in some cases, can make new builds far more competitive with resale options.
If you are curious how this might apply to your situation, we are happy to walk through the numbers with you. This could mean out with the old & in with the new.
