GST Rebate Shakes Up Kelowna Real Estate

New GST Rebate for First-Time Buyers: What It Means for Kelowna Real Estate – Even If You’re Not One

Why This Matters (Even If You're Not a First-Time Buyer)

On May 27th, the federal government rolled out a new GST rebate for first-time home buyers. It’s one of the biggest housing announcements of 2025 — and it’s about to reshape the Kelowna real estate market.

Whether you’re looking to buy your first home, upgrade, or build infill multifamily housing, this rebate has ripple effects that go far beyond first-time buyers.

🏠 What’s the New GST Rebate?

Here’s the breakdown:

• ✅ Full 5% GST rebate on new homes up to $1 million

• ✅ Phased rebate for homes priced between $1 million and $1.5 million

• ✅ Applies to pre-sale, new construction, owner-built homes, and co-op shares

For a first-time buyer in Kelowna, this could mean up to $50,000 in savings.

In a city where new homes often hover near or just below $1M, this is a game-changer.

🔍 Kelowna Real Estate in 2025: Who’s Buying?

So far this year:

• 27% of all buyers in Kelowna are first-timers

• Lower interest rates + more inventory are pulling them in

• This rebate just added fuel to that fire

📊 What Are First-Time Buyers Purchasing?

Here’s a look at new homes built in 2024 or later (YTD 2025):

✅ Key Insight: Nearly all new townhomes and condos fall within the GST rebate threshold. This is where first-time buyer demand will skyrocket.

💵 How Much Can Buyers Save?

Let’s assume just 40% of the lower-priced sales go to first-time buyers:

• 27 homes

• $20.18M in sales

• $1.01M in GST collected

That’s a potential $37,000 in savings per buyer — and $1M+ in total market shift.

🏘️ Real Listing Example: 745 Patterson Ave, Kelowna

💡 Listed at $789,000 | Built in 2024 | GST Rebate Eligible

🔑 Why It’s a Smart Buy Now:

• First-time buyers could get up to $39,000 back

• 3 beds, 2.5 baths with garage + outdoor space

• Steps to Pandosy, beaches, and downtown

Market Context:
Out of 3 units listed since Fall 2024:

• 1 just sold

• 1 is under contract

• 🔥 Only 1 unit left — and that’s this one

With the rebate in place, this could be the best value townhome left in South Kelowna.

📈 For Sellers: Expect More Action Under $1M

If you're selling new construction under $1 million, this is your moment. Here's why:

• More motivated buyers enter the market

• Rebate savings = stronger, cleaner offers

• You may be able to hold firmer on price

• Homes in this range are about to get a lot more competitive

🧱 For Developers & Infill Builders

If you're planning a small-scale multifamily project in Kelowna, this rebate:

• Boosts absorption for townhomes and condos under $1M

• Could increase presale interest (buyers stretch further with rebate)

• Suggests price points for unit mix and design choices

• Gives edge to projects completing before 2036 (rebate deadline)

Strategy Tip: Focus on efficient builds that stay GST-eligible for buyers. The buyer pool just got deeper.

🔮 What Comes Next?

We’re already seeing a shift:

• Townhomes are seeing more showings and offers

• Apartments still lag slightly — creating a potential opportunity for smart buyers

💡 Final Thoughts

This GST rebate isn't just a headline — it’s a real opportunity.

Whether you’re buying, selling, or building in Kelowna, the landscape just changed.

✅ Buyers: Get strategic. The best new builds may not last.
✅ Sellers: Position your listing where the rebate applies.
✅ Builders: Adjust your pricing strategy now — this policy could increase your ROI.

Let’s Talk Strategy

If you’re buying, selling, or planning a project, let’s chat. We can help you:

• Understand how this rebate affects your specific plans

• Identify GST rebate–qualified homes

• Market your property to eligible buyers

• Analyze returns on your next infill project

📞 Mark & Maddie | Selling Kelowna Real Estate Group

📲 778-744-0872
📧 [email protected]
📍 Experts in Kelowna, West Kelowna, Lake Country & Peachland