This week...
A GST exemption for first-time homebuyers (FTHBs) was a popular policy point ahead of the federal election, and it’s now been actioned by Prime Minister Mark Carney’s government. Starting in 2025-2026, FTHBs are entitled to GST relief on new homes up to $1.5 million. This is intended to “lower the upfront cost of buying” for FTHBs while simultaneously reducing the tax burden of the purchase. This savings of up to $50,000 is quite significant.
Some specifics:
A first-time homebuyer may be eligible for the FTHB GST Rebate if:
To be considered a “first-time homebuyer” for the purposes of the FTHB GST Rebate, an individual would generally need to meet the following conditions:
The FTHB GST Rebate would be phased out in a linear manner for new homes valued between $1 million and $1.5 million. For example, under the linear phase-out, a home valued at $1.25 million would be eligible for a 50 per cent GST rebate (a rebate of up to $25,000).
No FTHB GST Rebate will be available for new homes valued at or above $1.5 million.
Read more on the qualifying specifics here.
In our June podcast episode, the Rennie team dives into how the Metro Vancouver housing market is evolving mid-year, highlighting both subtle shifts and consistent trends.
The conversation kicks off with a look at interest rates—despite the recent Bank of Canada cut, its effect on buyer behavior has been modest so far. Many are still waiting for more significant rate changes before jumping into the market.
Supply continues to be a big story. While inventory levels have increased compared to last year, active listings remain below historical averages. This limited supply helps explain why prices are holding steady, even as sales volume shows only moderate activity.
The team also explores regional trends, noting stronger interest in areas like the Fraser Valley, where buyers are seeking more affordability and space. Meanwhile, urban centers are seeing slower momentum, particularly in the presale and condo sectors.
Overall, June was a stable month for real estate, marked by cautious optimism. Buyers and sellers alike seem to be in a holding pattern, watching for more economic clarity in the second half of the year.
To listen to the podcast: CLICK HERE
- Canada's population grew by just 20,100 net people in Q1 2025, its third-lowest quarterly change in comparable data back to 1972. Meanwhile, BC's population declined by 2,400, the largest quarterly decline over the same period.
- Canada's unemployment rate reached 7.0% in May. Since January, the country has shed 15,300 net jobs, with losses heavily concentrated in Ontario and in trade-exposed sectors. In contrast, BC has led the country in job growth with 19,900 net new jobs.
- The consumer price index held at 1.7% for the second consecutive month in May. Core measures of inflation, which are more closesly followed by the Bank of Canada, fell to 3.0% in May from 3.1% in the prior month.
GST Exemption for First-Time Homebuyers Announced by Federal Government
A GST exemption for first-time homebuyers (FTHBs) was a popular policy point ahead of the federal election, and it’s now been actioned by Prime Minister Mark Carney’s government. Starting in 2025-2026, FTHBs are entitled to GST relief on new homes up to $1.5 million. This is intended to “lower the upfront cost of buying” for FTHBs while simultaneously reducing the tax burden of the purchase. This savings of up to $50,000 is quite significant.
Some specifics:
A first-time homebuyer may be eligible for the FTHB GST Rebate if:
- they buy a new home from a builder;
- they build, or hire someone else to build, a home on land they own or lease; or
- they buy shares of a co-operative housing corporation.
- The FTHB GST Rebate will apply to the same types of housing and apply similar eligibility criteria and conditions as the existing GST / HST New Housing Rebate, with certain modifications to ensure that the rebate is targeted at FTHBs.
To be considered a “first-time homebuyer” for the purposes of the FTHB GST Rebate, an individual would generally need to meet the following conditions:
- be at least 18 years of age;
- be either a Canadian citizen or a permanent resident of Canada; and
- not have lived in a home, whether in or outside Canada, that they owned or that their spouse or common-law partner owned in the calendar year or in the four preceding calendar years.
- Together with the existing GST / HST New Housing Rebate (where that rebate is applicable), the FTHB GST Rebate would provide a rebate of 100 per cent of the GST on new homes valued up to $1 million.
The FTHB GST Rebate would be phased out in a linear manner for new homes valued between $1 million and $1.5 million. For example, under the linear phase-out, a home valued at $1.25 million would be eligible for a 50 per cent GST rebate (a rebate of up to $25,000).
No FTHB GST Rebate will be available for new homes valued at or above $1.5 million.
Read more on the qualifying specifics here.
Market Insights: June 2025 at Rennie
In our June podcast episode, the Rennie team dives into how the Metro Vancouver housing market is evolving mid-year, highlighting both subtle shifts and consistent trends.
The conversation kicks off with a look at interest rates—despite the recent Bank of Canada cut, its effect on buyer behavior has been modest so far. Many are still waiting for more significant rate changes before jumping into the market.
Supply continues to be a big story. While inventory levels have increased compared to last year, active listings remain below historical averages. This limited supply helps explain why prices are holding steady, even as sales volume shows only moderate activity.
The team also explores regional trends, noting stronger interest in areas like the Fraser Valley, where buyers are seeking more affordability and space. Meanwhile, urban centers are seeing slower momentum, particularly in the presale and condo sectors.
Overall, June was a stable month for real estate, marked by cautious optimism. Buyers and sellers alike seem to be in a holding pattern, watching for more economic clarity in the second half of the year.
To listen to the podcast: CLICK HERE
