Rising home prices, higher borrowing costs, and limited supply made it challenging for first-time buyers to enter the market. But recently, something important has changed. The federal government introduced GST relief on newly built homes for first-time buyers, a program designed to make new construction more affordable while encouraging additional housing supply. For eligible buyers, the savings could be substantial — potentially up to $50,000 depending on the purchase price of the home. For many first-time buyers, this could represent one of the most significant financial advantages available when purchasing a property. Let’s break down how the program works and why the timing may be especially attractive right now. How the GST Relief Program Works Newly constructed homes in Canada typically include a 5% federal Goods and Services Tax (GST). For example: Purchase price of a new home: $1,000,000 GST (5%): $50,000 Under the new incentive program for first-time buyers, eligible purchasers may receive relief from this tax depending on the purchase price of the home. Full GST Rebate First-time buyers purchasing newly built homes priced up to $1 million may qualify for a full GST rebate, potentially eliminating the entire 5% tax. This means a buyer purchasing a $1,000,000 new home could receive savings of up to $50,000. Partial GST Rebate For homes priced between $1 million and $1.5 million, buyers may still qualify for a partial GST rebate. While the exact rebate amount varies depending on the purchase price, the program still offers meaningful savings that can help reduce overall acquisition costs. Homes Above $1.5 Million. Homes priced above $1.5 million are generally not eligible for the incentive. Why This Incentive Exists The goal of the program is twofold. First, it helps first-time buyers enter the housing market by reducing upfront costs associated with purchasing a new home. Second, it encourages more housing construction, which Canada urgently needs to address supply shortages. By making new homes more affordable for buyers, the government hopes to stimulate demand for new developments and increase the overall housing supply. Why the Timing May Be Especially Attractive Government incentives alone can make a meaningful difference for buyers. But when combined with current market conditions, the opportunity becomes even more compelling. In many markets across Southern Ontario and other parts of Canada, real estate conditions have shifted compared to the intense competition seen during the pandemic years. Buyers are now experiencing: • more inventory available • fewer bidding wars • increased negotiation opportunities • more builder incentives In other words, first-time buyers are gaining leverage again. When this leverage is combined with programs like the GST rebate, it creates a rare moment where buyers may be able to purchase with both financial incentives and stronger negotiating power. The Important Reality Buyers Should Understand While government incentives can be incredibly helpful, they do not automatically mean every new home is a great deal. Some new construction homes may still be priced above comparable resale properties nearby. Builders price homes based on several factors including construction costs, land prices, development timelines, and market expectations. Because of this, first-time buyers should still carefully analyze market value and compare new construction with resale homes in the same area. The smartest buyers use incentives like the GST rebate as one part of their overall strategy, not the only factor guiding their purchase decision. Where Buyers Often Find the Best Opportunities Experienced real estate professionals often help buyers identify opportunities beyond the advertised incentives. These may include: • builder inventory homes nearing completion • negotiated upgrades or closing incentives • developer promotions not widely advertised • resale homes offering strong value compared to new construction In some cases, these opportunities can produce even better financial outcomes than incentives alone. Final Thoughts The GST relief program represents a meaningful opportunity for first-time buyers in Canada. With potential savings of up to $50,000, the incentive can significantly reduce the cost of purchasing a newly built home. But the real advantage comes when buyers combine these incentives with smart strategy, careful market analysis, and professional guidance. In today’s shifting market, first-time buyers may find themselves in a stronger position than they’ve been in years. Thinking About Buying Your First Home? If you’re considering purchasing your first home, understanding the available incentives and how they apply to your situation can make a significant difference. At DiLoreto & Co., we help buyers analyze both new construction and resale opportunities to ensure they’re making the smartest decision possible. Reach out anytime to start the conversation and learn how these incentives may work for you.

For buyers, that can sound like great news. More inventory, more negotiating power, and potentially better prices. But for homeowners who are planning to sell their current home and purchase another, hearing this can sometimes create concern. The reality, however, is often very different. When you’re both selling and buying at the same time, your situation is usually more balanced and sometimes even advantageous than many people realize. The key is understanding one important concept: the difference between the two transactions. Focus on the Difference — Not Just the Headlines Market headlines often focus on prices softening or homes taking longer to sell. While those things do matter, they don’t tell the whole story for homeowners who are both selling and purchasing. What truly matters is the difference between what you sell for and what you buy for. In real estate terms, this is often referred to as the “delta.” Let’s look at a simple example. Imagine your current home was previously worth $500,000. If market values soften by 10% , you may sell it for around $450,000 . That’s a $50,000 decrease . Now consider the home you want to move into. If that home was previously valued at $1,000,000 , the same 10% market adjustment would bring the price down to $900,000 . That’s a $100,000 decrease . Even though your current home sold for less, the home you purchased dropped twice as much in real dollars. In this scenario, you effectively gained about $50,000 in your move-up purchase. This is why many families upgrading their homes can actually benefit during a cooler market. Move-Up Buyers Often Benefit the Most When the market slows, higher-priced homes often experience larger dollar adjustments. For buyers who are moving from: a starter home to a larger family home or upgrading into their long-term property the gap between the two properties can narrow significantly. Simply put: The bigger the step up, the greater the potential opportunity. Why Strategy Matters More Than Ever In markets like today’s, success is not just about timing, it’s about strategy. The way your sale and purchase are handled can have a significant impact on your final outcome. On the selling side, your REALTOR® should be focused on: Strategic pricing based on real market data Professional marketing and exposure Preparing the home to stand out to buyers Strong negotiation to protect your equity Even in a buyer’s market, well-presented and well-priced homes still sell. Preparation and positioning make all the difference. Even in a buyer’s market, well-presented and well-priced homes still sell. Preparation and positioning make all the difference. The Buying Side Has Opportunities Too While sellers need strong marketing, buyers today often have something they haven’t seen in years: Options. With more inventory available and homes spending longer on the market, buyers may have opportunities to: Negotiate on price Include conditions Request repairs or improvements Structure the deal in their favour But these advantages only matter if someone is actively negotiating on your behalf. A strong REALTOR® doesn’t just help you find a home, they help you secure the best possible terms. Winning on Both Sides of the Transaction When you’re both buying and selling, the goal isn’t simply to focus on one side of the transaction. The real objective is to optimize both. That means: Maximizing the sale price of your current home Negotiating the best terms on your next purchase Carefully managing the difference between the two properties This is where experience, guidance, and a thoughtful strategy truly matter Thinking About Making a Move? If you’re considering selling and buying at the same time, today’s market may present more opportunity than you think. Understanding the numbers, timing, and negotiation strategy can make a meaningful difference in the outcome of your move. If you’re curious about what your next step might look like in today’s market, we’d be happy to help. Start with a conversation. 📞 Connect with DiLoreto & Co. 🏡 Get a professional evaluation of your home Your next move may be closer and more advantageous than you realize.

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