New Federal GST Rebate: How First-Time Buyers in Saskatoon Can Save in 2025

In May 2025, the federal government introduced a major affordability initiative designed to help first-time home buyers: the removal of GST on the purchase of newly built homes up to $1.5 million. This measure, now in effect, is already reshaping buying potential — especially in mid-sized cities like Saskatoon, where new builds remain within reach for many Canadians.

According to the official announcement from the Department of Finance Canada, the GST relief applies to first-time buyers purchasing a newly constructed home for personal occupancy valued up to $1.5 million. The full rebate is available for homes priced at $750,000 or less, and phases out gradually between $750,000 and $1.5 million. This means a full 5% rebate on the GST — a savings of up to $75,000 depending on the purchase price and location.

This move is intended to address housing affordability by easing the tax burden on those entering the market for the first time — and by encouraging the construction of new supply in the housing sector. In cities like Saskatoon, where developers continue to build in expanding neighbourhoods like Brighton, Rosewood, and Aspen Ridge, the timing couldn’t be better.

Saskatoon’s average new home price is well below the upper rebate threshold, allowing many buyers to qualify for either a full or partial GST exemption. With May’s benchmark home price at $433,700, this federal program has the potential to significantly lower upfront costs, helping first-time buyers bridge the affordability gap.

Beyond the tax savings, this initiative sends a strong signal to the market: Ottawa is serious about supporting new homebuyers and stimulating residential construction. As builders respond to the increased interest, we can expect more inventory coming to market over the next 12–18 months.

If you’re a first-time buyer considering a newly built home in Saskatoon, now is the time to explore your options. Between competitive pricing, federal incentives, and steady city growth, the path to homeownership may be more accessible than ever.

To learn more about eligibility and rebate details, visit Canada.ca.