The Ontario government is proposing a full rebate of the 8 per cent provincial portion of the HST for first-time buyers purchasing new homes valued up to $1 million. The plan, part of the upcoming 2025 Fall Economic Statement, aims to make homeownership more affordable and boost housing construction across the province.
The rebate could save first-time buyers up to $80,000, and when combined with the federal government’s proposed 5 per cent HST removal, total savings could reach $130,000. Finance Minister Peter Bethlenfalvy said the measure will help hardworking families during uncertain economic times.
The new rebate would work alongside the existing Ontario HST New Housing Rebate and apply to newly built and substantially renovated homes. Housing Minister Rob Flack added the move supports both families and the tradespeople building Ontario’s communities.
The proposal will be detailed further in Ontario’s 2025 Economic Outlook and Fiscal Review on November 6.
