New GST Rebate for First-Time Home Buyers in Kelowna: What You Need to Know
Could this be the break first-time home buyers have been waiting for?
As of May 27, 2025, the Government of Canada has announced a new GST rebate on new homes — and if you’re a first-time home buyer in Kelowna, this could mean savings of up to $50,000 on your purchase.
But even if you’re not a first-time buyer, this shift could impact demand, pricing, and competition across the Kelowna real estate market. Let’s break it down.
💰 What Is the New First-Time Home Buyer GST Rebate?
The First-Time Home Buyers’ GST Rebate is a federal housing measure aimed at lowering the cost of buying a new home and increasing housing supply across Canada.
Here’s how it works:
● 100% GST rebate for new homes priced up to $1 million
● Partial rebate (phased out linearly) for homes between $1 million and $1.5 million
● Maximum savings: Up to $50,000
● Applies to builder purchases, owner-built homes, and co-op shares
● Home must be your primary residence
This rebate is available for new homes:
● Purchased on or after May 27, 2025
● Where construction begins before 2031
● And is substantially completed by 2036
🔍 Important Clarification: This Is a Rebate — Not an Exemption
It’s important to know that this rebate doesn’t eliminate GST at the time of purchase.
You’ll still need to pay the GST upfront, then apply for the rebate — meaning you’ll need the cash flow or financing to cover that 5% initially.
This is crucial for budgeting and understanding your true cost-to-close.
👤 Who Qualifies as a First-Time Buyer?
To be eligible, you must:
● Be at least 18 years old
● Be a Canadian citizen or permanent resident
● Not have owned (or lived in a home owned by a spouse/partner) in the last four calendar years
This aligns with CRA definitions and applies only once per individual or couple.
🏘️ What Types of Homes Qualify?
You can apply the rebate to:
● New homes purchased from a builder
● Owner-built homes (or homes built by a contractor on your land)
● Shares in a co-op housing corporation (not for rentals)
Not eligible:
● Homes priced $1.5M+
● Purpose-built rentals that already qualify for other GST rebates
● Assignment sales from agreements signed before May 27, 2025
📊 What This Means in the Kelowna Real Estate Market
Kelowna is one of the most active real estate markets in BC, with a large portion of buyers looking at new construction.
In Q1 2025:
● 27% of all buyers in the Okanagan were first-time home buyers
● The average price of new townhomes was $859,751
● The average new apartment sale price was $613,976
With the rebate now in place, first-time buyers will likely surge into the market again — especially in that $600K–$1M range where they now get a real financial edge.
⛳ Market Tip:
If you’re not a first-time buyer, expect more competition for new townhomes and condos priced under $1M.
That means stronger offers, less room for negotiation, and potential price firming in these segments.
🏡 Featured GST Rebate Eligible Home in Kelowna
📍
#2 – 745 Patterson Avenue, Kelowna
List Price: $789,000 | Built: 2024 | Eligible for GST Rebate
● 3 Bedrooms + Den | 2.5 Bathrooms
● Private outdoor space + garage
● Steps to South Pandosy, beaches, transit & downtown
● Modern finishes, bright layout, and only one unit left!
● First-time buyers could save up to $39,000
🔗 View Listing (here)
🔗 See More Homes That May Qualify
We’ve built a list of new construction homes for sale in Kelowna that may qualify for the GST rebate.
👉 Click here to browse eligible homes
Or if you’d prefer a curated list sent straight to your inbox:
📩 Email us directly at [email protected]
📲 Call or text Mark at 778-744-0872
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✅ Final Thoughts
This rebate is a big deal — it lowers the barrier to entry for young buyers in a tough housing market. But it also shifts the playing field for all buyers. If you’re actively shopping for new homes in Kelowna, make sure you understand:
● If the home qualifies
● How much you could save
● And how this may change your strategy
Need help navigating it? I’m happy to walk you through the details and help you make the most of this opportunity.
📞 Call or text 778-744-0872
📩 DM @sellingkelownabc
