Ontario’s government is promising big savings for first-time home buyers as it moves to rebate the full 8 percent provincial portion of the HST on most new homes valued up to $1 million.
The rebate, to be included in the 2025 Fall Economic Statement, would provide up to $80,000 in provincial savings for first-time buyers – or as much as $130,000 when combined with the federal government’s proposed removal of its 5 percent HST portion. Finance Minister Peter Bethlenfalvy says the measure will make life more affordable and spur new home construction at a time of economic uncertainty.
“In the face of tariffs and global uncertainty, it’s never been more important to make life affordable for hardworking Ontarians,” Bethlenfalvy said. “We’re saving families money on one of the biggest financial transactions of their lives.”
The rebate would apply to newly built or substantially renovated homes purchased for use as a primary residence. For homes valued between $1 million and $1.5 million, the rebate would phase out gradually. The proposal aligns with the federal government’s plan announced earlier this year and remains subject to federal legislation.
Housing Minister Rob Flack said the initiative complements Ontario’s broader strategy to speed up construction, protect jobs, and make homeownership attainable for more families.
(Written by: Joseph Goden)
