What Kelowna Homebuyers Need to Know About the First Time Homebuyer GST HST Rebate 2025

Buying your first home in Kelowna and the Okanagan is a huge milestone, and every dollar matters. Ottawa has proposed a First Time Homebuyer GST HST Rebate to make new homes more affordable, but there are a few important details and delays you should know about before you plan your build or purchase.

Below is a quick, plain English update from the team at 3rd Generation Homes, written for first time buyers in BC considering a custom home or a newly built home.
 

The short version

1. 1. 1. The federal government has proposed a First Time Homebuyer GST HST Rebate.
   2. 2. Status today, it has not received Royal Assent yet, so the CRA is not processing claims.
   3. 3. If enacted as proposed, first time buyers could get up to 100 percent of the 5 percent GST federal portion of HST back on new homes up to 1 million dollars, with a linear phase out to 1.5 million dollars.

 

 

What the proposal says in plain language

According to the CRA summary of the proposed rules

1. 1. 1. Rebate amount, up to 100 percent of GST or the federal HST on eligible new homes at or below 1,000,000 dollars, tapering down to zero at 1,500,000 dollars.
   2. 2. Who could qualify, first time buyers purchasing a new or substantially renovated home to use as their primary residence, including owner built. You must meet the CRA first time buyer definition.
   3. 3. Timing windows proposed, generally for agreements on or after 27 May 2025 and before 2031, with possession before 2036. Construction must begin before 2031. Owner builds have matching dates for start and completion.
   4. 4. This is in addition to the long standing GST HST New Housing Rebate where applicable.

 
Because the legislation is still proposed, the CRA states it will not process First Time Homebuyer rebate claims until the bill receives Royal Assent.

External reference, CRA program page
 

Why the delay and what industry is asking for

The Canadian Home Builders Association CHBA has urged the federal government to pass the bill quickly when Parliament returns on 15 September 2025. CHBA has also asked Ottawa to broaden the relief so it better fits high cost markets like Kelowna by

1. 1. 1. Extending GST relief to all new home buyers, not just first timers
   2. 2. Lifting price thresholds in expensive markets, for example 1.5 to 2 million dollars
   3. 3. Including ADUs and secondary suites, which add gentle density and help with affordability

 
CHBA open letter
 

What this could mean for first time buyers in Kelowna

If you are eyeing a new build in the Central Okanagan, the proposed rebate could return thousands of dollars, making it easier to cover closing costs, landscape your yard, or add energy efficient upgrades. For buyers considering legal suites or carriage homes, CHBA is asking to include ADUs (Accessory Dwelling Units) and secondary suites. If adopted, that would be an extra win for affordability and long term flexibility.
 

 

What you can do now while we wait

1. 1. 1. Map your build timeline. Custom homes take planning, design, and permits, often 12 to 18 months end to end. Starting the process now helps you hit future rebate windows if and when the bill passes.
      See our custom build process
   2. 2. Get prepped for eligibility. Keep clean records such as agreements and invoices and make sure the home will be your primary residence at possession, key conditions in the CRA rules.
   3. 3. Run with and without rebate budgets. We will price your build both ways so you know exactly where you stand. When the law is enacted, we will help you capture every dollar you are entitled to.
   4. 4. Think ahead about suites. If you are considering a secondary suite or ADU, let us design for it now so you are ready should the federal relief expand as CHBA recommends.

 

 

FAQs for BC buyers

Is the rebate available today?

Not yet. No applications or claims are being accepted until Royal Assent.

Does this replace the existing New Housing Rebate?

No. The First Time Homebuyer rebate is in addition to the existing GST HST New Housing Rebate where applicable.

What price limits apply in Kelowna?

As proposed, full rebate at or below 1 million dollars, phased down to zero at 1.5 million dollars. CHBA has asked the government to raise thresholds in expensive markets. We will update clients if this changes.
 

Building your first home in the Okanagan

At 3rd Generation Homes, we pair transparent budgets with award winning craftsmanship, and we keep you informed on incentives as they evolve. If you are exploring a first home or a family ready custom build in Kelowna, we are here to help.

Explore our Kelowna custom homes

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Note This article is for general information only and reflects the situation at time of posting. Programme details may change after Royal Assent. Always refer to the CRA and consult a tax professional for personal advice.