Purchasing your first home can be a challenge, especially in today’s economic climate. Between rising housing prices, larger down payment requirements, and the general cost of living, many Manitobans are finding it increasingly difficult to enter the housing market without outside financial assistance.
To help alleviate some of these challenges, the federal government introduced the First-Time Home Buyers (FTHB) GST Rebate on May 27, 2025. This new initiative aims to support eligible buyers by reducing the Goods and Services Tax (GST) payable on newly built homes. Here’s what you need to know if you’re planning to purchase or build your first home in Manitoba.
What Is the FTHB GST Rebate?
The First-Time Home Buyers GST Rebate provides a rebate of 100% of the GST payable on new homes with a purchase price of up to $1,000,000. The rebate is available on a sliding scale for homes priced between $1,000,000 and $1,500,000. It is not available for homes priced above $1,500,000. This means that qualified buyers could receive a rebate worth up to $50,000, depending on the purchase price and applicable GST.
This rebate applies whether you’re buying from a builder, building a home on land you own or lease, or purchasing shares in a co-operative housing corporation.
Who Qualifies as a First-Time Home Buyer?
To be eligible for the FTHB GST Rebate, at least one buyer must meet the following criteria:
- Be 18 years of age or older
- Be a Canadian citizen or permanent resident
- Not have owned or lived in a home owned by themselves or their spouse or common-law partner during the year of purchase or in any of the four previous calendar years
Additionally, the qualifying individual must also:
- Be purchasing the home for use as their primary place of residence
- Be the first person to occupy the home as a place of residence
- Enter into a contract on or after May 27, 2025
In the case of custom builds or owner-built homes, construction must begin on or after May 27, 2025. The home must also be substantially completed before 2036.
What Types of Homes Are Covered?
The rebate is available for:
- New homes purchased from a builder
- Newly constructed homes built by the purchaser or a contractor on land the buyer owns or leases
- Units in co-operative housing corporations
Resale homes do not qualify under this program.
Important Considerations
If you signed a purchase agreement before May 27, 2025, you cannot re-sign or alter that agreement to become eligible. According to the government’s guidelines, cancelling and re-entering into a new agreement, or varying the original terms to create the appearance of a new agreement, may disqualify you from receiving the rebate.
The rules around eligibility are strict, and the Canada Revenue Agency may scrutinize agreements that appear to have been modified solely for the purpose of qualifying.
Confirming Your Eligibility
Because this program has only been introduced and is not yet law, some of the finer details and administrative processes are still to be determined. Before relying on this rebate to inform your purchase decision, it is a good idea to seek guidance from a legal professional familiar with both real estate transactions and the FTHB GST Rebate.
Need Help Navigating Your First Home Purchase?
At Lange Law, we regularly assist clients across Winnipeg and Manitoba with the legal aspects of purchasing property. Whether you are entering into a new home construction agreement, reviewing co-op share contracts, or just need clarity around your eligibility for the FTHB GST Rebate, we can help ensure you are protected throughout the process.
Contact us today to schedule a consultation and take the next step toward homeownership with confidence.
For full details, see the official announcement from the Government of Canada here.
