Ottawa First-Time Buyers, Meet Your New BFF: The 2025 GST Rebate

Ottawa First-Time Buyers, Meet Your New BFF: The 2025 GST Rebate

If you’ve been sitting on the sidelines waiting for a sign that it’s finally your time to buy a home, here it is — courtesy of the Government of Canada, no less.

In May 2025, Ottawa buyers got a long-overdue gift: the brand-new First-Time Home Buyer GST Rebate. It’s designed to make new-build homes more attainable and, yes, it can save you a shocking amount of money. So grab your latte (you’re still allowed to have those, by the way), and let’s break it down in plain English.

So, what is this rebate exactly?

When you buy a new construction home, the government usually charges GST — which, on a $900,000 house, is $45,000. Ouch.

This new program says, “Hey first-timers, that’s a lot — let’s give it back.”

The First-Time Home Buyer GST Rebate gives you a full GST refund on new homes priced up to $1 million. That means no GST cost for qualified buyers — and if the home is priced between $1 million and $1.5 million, the rebate phases out gradually. Anything over $1.5 million doesn’t qualify.

For many Ottawa buyers, this is a game-changer. New-build homes often fall just under that magic $1 million mark, making the rebate especially impactful for first-time buyers in our market.

Who qualifies?

You qualify if you:

• Are a first-time buyer (meaning you or your spouse/common-law partner haven’t owned and lived in a home in the past four years)

• Are buying a new build or building one yourself

• Plan to live in it as your primary residence

• Sign your agreement of purchase and sale on or after May 27, 2025

That last part’s key — if you bought before that date, this specific rebate doesn’t apply (though other ones might).

How much are we talking?

Up to $50,000 back. Yes, really.

If your new build is $900,000, the GST portion is 5% — that’s $45,000. The rebate wipes that right out. You’ll still pay the listed price to your builder at closing, but you’ll get that money back after closing through the rebate. That’s a serious refund, and a huge win for first-time buyers.

The Ottawa angle

Ottawa’s new-build scene is buzzing right now — areas like Barrhaven, Kanata, Orleans, and Riverside South have projects launching left and right.

And here’s the best part: this rebate sits on top of what’s already included in the builder’s price. Builders in Ottawa already include HST in their advertised pricing, so the rebate means real money back — not just a pricing gimmick.

Translation: if you’ve been priced out before, this might finally be your moment to jump in.

Brittany’s pro tips (aka how to actually make this work for you)

1. Call your agent — not the builder first.
Before you walk into a model home or fill out an online form, talk to your agent first — aka me. I work with all Ottawa builders and have access to exclusive pricing, incentives, and upgrade packages that aren’t always advertised. I know which sites are negotiating, which lots are coming up, and how to get you the most value for your budget.

This rebate is just one piece of the puzzle — I’ll help confirm your eligibility before you sign anything and make sure you don’t miss a single dollar you’re entitled to.

2. The rebate is on top of the builder’s listed price.
Most builders already include the GST/HST in their advertised pricing, so this new First-Time Buyer GST Rebate is money back after closing — up to $50,000 for qualified buyers. It’s not a discount built into the sale price; it’s actual cash you get back once your purchase closes.

In other words: the listed price is what you pay, and then the rebate comes back to you later — making it one of the biggest first-time buyer perks Ottawa has ever seen.

3. Let’s make sure you qualify.
If you’re buying with a partner and one of you has owned before, don’t assume you’re disqualified. There may still be ways to structure things so you can benefit. I’ll review your details, confirm eligibility, and work with your lawyer and the builder to make sure everything lines up properly.

4. Want to save even more?
I keep an updated list of available new builds, quick-close homes, and builder incentives across Ottawa — the kind of info you won’t find online. If you’re a first-time buyer, reach out before you visit any sales office so we can combine all the available savings and get you the best deal possible.

The fine print (but in human language)

• Applies to newly constructed or substantially renovated homes — not resales.

• Full rebate for homes up to $1 million, partial for $1 million–$1.5 million, none above that.

• You (or your spouse/partner) must meet the “first-time buyer” definition under CRA rules.

• Applies to purchase agreements signed on or after May 27, 2025.

Bottom line

For Ottawa buyers, this rebate is a massive opportunity — especially if you’re looking at new construction. Between this program and recent interest rate cuts, the market’s starting to tip back in favour of buyers.

If you’re wondering whether you qualify or how this applies to your dream community, reach out before stepping into a sales centre. I’ll help you understand your options, connect you with the right builder, and make sure you get every dollar you deserve.

Update: The Provincial Portion May Be Next

There’s even more good news brewing. Ontario has announced its intention to match the federal GST rebate with a provincial HST rebate for first-time buyers of new-build homes. That means buyers could eventually get back both the federal (5%) and provincial (8%) portions of the HST — which would be massive savings.

Right now, the provincial rebate is still pending official legislation, so we’re waiting on final details and timing from Queen’s Park. But if and when it’s approved, a $600,000 new build could qualify for a total rebate of up to $78,000between the two levels of government.

It’s not law yet, but it’s an exciting development worth watching — and one more reason first-time buyers might want to get ready to jump when it becomes official.

Thinking about a new build in Ottawa?
Let’s chat about how this rebate fits into your plan. Whether you’re ready to buy now or just exploring your options, I’ll help you find the perfect home — and make sure you don’t leave up to $50,000 sitting on the table.

📞 613-858-9087
📧 brittany@fetchinghomes.ca
🌐 www.fetchinghomes.ca