If you’re a first-time homebuyer, there’s great news — and a few things you really need to know before jumping into a pre-construction or assignment deal.
As of March 20, 2025, the Canadian government has completely removed the 5% GST on new or substantially renovated homes under $1 million — only for first-time homebuyers.
✅ That’s up to $50,000 in savings
✅ Applies to new builds AND assignment sales (conditions apply)
*Source: Global News*
An assignment sale is when the original purchaser of a pre-construction home sells their contract to someone else (that could be you) before the unit is built.
Yes — you can still qualify for the GST exemption on the builder portion if:
BUT — here’s what you still need to pay:
Let’s say you’re buying an assignment condo for $700,000:
The assignment profit (the seller’s markup) is fully taxable, no matter what — and that tax could come out of your pocket, not the seller’s(depends on the wordings on the offer, you will want an experience realtor to guide you through the whole process).
*Source Forms by OREA (Ontario Real Estate Association)*
📌 1. Development Charges at Final Closing
Many pre-construction and assignment units have development levies and charges due on occupancy. These can range from $5,000 to over $20,000+, depending on the builder and project.
🧠 Tip: Always ask for a cap on development charges in the original agreement. If there’s no cap, you’re at risk of a surprise bill on final closing.
📌 2. Builder Approval + Admin Fees
Assignment sales usually require builder consent. This often comes with:
📌 3. Legal + Tax Complexity
Assignment sales are more complicated than regular resale deals. You’ll need:
📌 4. Deposit Reimbursement
As the assignee (buyer), you’ll usually need to reimburse the seller for their deposit paid to the builder, plus the assignment fee — before final closing.
*Source Forms by OREA (Ontario Real Estate Association)*
✅ You can save thousands with the new GST exemption — even on assignment sales as first-time homebuyer
⚠️ But make sure you’re prepared for extra costs, taxes, and legal complexities
📲 Buying your first home in Toronto or the GTA? Break down the numbers, review your deal, and help you avoid costly surprises, reach out today to discuss your options and make the most of the opportunities this market has to offer.
Have feedback or questions? Please drop an email to Opel Ou, Real Estate Broker: opel@opelou.com
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