Office of the Parliamentary Budget Officer
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New GST Rebate for First-Time Home Buyers will cost $1.9 billion, says PBO

Ottawa (Ontario), June 11, 2025

The Parliamentary Budget Officer (PBO) estimates that the recently announced GST Rebate for First-Time Home buyers will cost $1.9 billion over six years, starting in 2025.

Bill C-4 proposes to introduce a new GST rebate for first-time home buyers. The Bill would grant a rebate of 100% of the GST on new homes valued up to $1 million, and a partial rebate on new homes value up to $1.5 million.

“Our estimates show that the new GST rebate for first-time home buyers will cost $1.9 billion over six years,” said Yves Giroux, PBO. “Over that period, we estimate that first-time homebuyers will receive subsidies averaging $27,000.”

The report outlines the model underlying the PBO’s analysis, which was also used to calculate the related Election Proposal Cost estimates.

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The underlying model is the same model used for Election Platform Costing Estimates [EL-45-1025502-P](https:\/\/www.pbo-dpb.ca\/en\/epc-estimates--estimations-cpe\/45\/EL-45-1025502-P) and [EL-45-1034656-P](https:\/\/www.pbo-dpb.ca\/en\/epc-estimates--estimations-cpe\/45\/EL-45-1034656-P).","abstract_fr":"Le projet de loi C-4 (45e Parl. 1re Sess.) propose d\u2019instaurer un nouveau remboursement de la TPS pour les acheteurs d\u2019une premi\u00e8re habitation. La pr\u00e9sente analyse donne une estimation du co\u00fbt de cette proposition et d\u00e9crit le mod\u00e8le sous-jacent. Ce dernier est le m\u00eame mod\u00e8le que celui utilis\u00e9 pour l\u2019estimation des co\u00fbts des promesses \u00e9lectorales [EL-45-1025502-P](https:\/\/www.pbo-dpb.ca\/fr\/epc-estimates--estimations-cpe\/45\/EL-45-1025502-P) et [EL-45-1034656-P](https:\/\/www.pbo-dpb.ca\/fr\/epc-estimates--estimations-cpe\/45\/EL-45-1034656-P).","highlights":[{"content":{"en":"The new GST rebate for first-time home buyers is expected to cost $1.9 billion over 6 years.","fr":"Le nouveau remboursement de la TPS pour les acheteurs d\u2019une premi\u00e8re habitation devrait co\u00fbter 1,9 milliard de dollars sur six 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