GST Rebates for New Homes: What Newfoundland Buyers Need to Know
- tonia503
- 2 days ago
- 3 min read
Buying a newly built home in Newfoundland just got more exciting—especially for first-time buyers. The federal government has proposed major changes to the GST rebate program that could save you thousands of dollars on your new home purchase.
But what’s actually changed? And how does it compare to what’s currently in place?
Let’s break it down.
✅ Current GST Rebate (2024 Policy Still in Effect)
Under the current federal GST New Housing Rebate, buyers of new or substantially renovated homes may be eligible to get back up to 36% of the 5% GST—but only if the purchase price is $450,000 or less.
🔍 Key Details:
Homes up to $350,000: You may receive the full rebate (up to $6,300).
Homes between $350,000 and $450,000: The rebate is reduced on a sliding scale.
Homes over $450,000: No rebate is available.
The home must be your primary residence (not a rental or secondary property).
Either you or your builder can apply for the rebate.
This policy works well for many Newfoundland buyers since home prices here often fall below $450,000—but not always. With rising construction costs, more new builds now exceed this cap, leaving buyers with no rebate at all under the current rules.
🚨 What’s Changing: Proposed GST Rebate for First-Time Buyers
On June 5, 2025, the federal government introduced new legislation that—once passed—will eliminate the GST entirely on the purchase of new homes up to $1 million for first-time homebuyers.
💸 What the New Rebate Could Look Like in NL:
On a $400,000 new home, this change would save first-time buyers $20,000 (the full 5% GST).
That’s money not added to your mortgage and not paid out-of-pocket at closing.
If you're putting 5% down, your required down payment would drop from $20,000 to $19,000, and your monthly mortgage payment could be $100–$120 lower.
📅 Timeline:
Applies to new home purchases made on or after May 27, 2024.
Construction must start before 2031 and be completed by 2036.
The policy has been proposed but still needs to be passed in Parliament.
🏡 How This Impacts Buyers in Newfoundland
The vast majority of new homes in Newfoundland fall under the $1 million threshold, making most first-time buyers eligible for the full GST savings once the new policy takes effect.
Unlike larger urban centres, where affordability remains a major hurdle, Newfoundland homebuyers now have a real advantage: lower prices and new incentives that can make homeownership easier than ever.
💬 What Should You Do Next?
If you’re thinking about building or buying a new home, this could be your window of opportunity. Whether you’re curious about:
How the GST changes affect your mortgage,
What your monthly payments would look like, or
How to get pre-approved under the current and future rules—
I’m here to help.
As a local mortgage expert, I’ll walk you through your options, run the numbers, and help you make the most of every dollar—now and when the new rebate becomes law.
Let’s chat about how you can take advantage of this new opportunity.
— Tonia, The Mortgage Missus
Contact The Mortgage Missus Inc. today to learn more!
Book a call today:
Tonia Mercer | The Mortgage Missus Inc.
About the author,
Tonia Mercer is an independent mortgage broker. She has been in the industry for 17 years, in 2021 she launched her own brokerage The Mortgage Missus Inc.
Tonia is passionate about financial education and believes that working with independent experts is the best way to get unbiased, professional advice. She has joined forces with local independent home and auto, financial advisor, legal, appraiser and real estate service providers. Effectively creating a concierge service for all things financial and real estate.
Tonia donates a portion of all mortgage revenue to Mercer's Mission, a street dog and cat feeding mission in the Dominican Republic. https://www.facebook.com/mercersmission
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