Photo by B. Shakyaver
The Ontario government has announced a new plan to make buying a first home more affordable. As part of its upcoming 2025 Fall Economic Statement, the province is proposing to rebate the full 8 per cent provincial portion of the HST for first-time home buyers who purchase new homes valued up to $1 million.
This new rebate could save buyers up to $80,000 when combined with current provincial programs. If the federal government’s proposed 5 per cent HST rebate also goes ahead, total savings could reach as much as $130,000 on a new home.
The new rebate would match the federal government’s First-Time Home Buyers’ GST/HST Rebate. It would temporarily remove the full 8 per cent provincial HST for qualifying first-time home buyers on newly built or substantially renovated homes.
The rebate would be available alongside the current Ontario HST New Housing Rebate, which already gives up to $24,000 in relief. Together, both programs would fully cover the 8 per cent provincial HST on homes valued up to $1 million. Homes priced between $1 million and $1.5 million would see the rebate gradually reduced.
The province says it is also investing record amounts to build more housing, including $4 billion for the Municipal Housing Infrastructure Program and $1.2 billion through the Building Faster Fund.
