Ontario First-Time Home Buyers to Get Full 8% HST Rebate on New Homes

The Ontario government is moving to make homeownership more affordable for first-time buyers by rebating the entire 8 percent provincial portion of the HST on new homes valued up to $1 million. The proposal, included in the upcoming 2025 Fall Economic Statement, is expected to deliver major savings for new buyers and stimulate housing construction across the province.

Under the plan, first-time buyers of qualifying new homes could save up to $80,000 through the provincial rebate. Combined with the federal government’s proposal to remove its 5 percent portion of the HST, total savings could reach $130,000 on a new home purchase.

Finance Minister Peter Bethlenfalvy said the measure is part of the government’s broader effort to ease financial pressures and keep the dream of homeownership alive. “We are leading by example, saving families money on one of the biggest financial transactions of their lives,” Bethlenfalvy said. “Ontario families deserve more money back in their pockets.”

The new rebate builds on Ontario’s existing HST New Housing Rebate, which already provides up to $24,000 in relief. Together, both rebates would fully cover the provincial portion of the HST for first-time buyers purchasing new homes up to $1 million. For homes priced between $1 million and $1.5 million, the rebate would gradually decrease, reaching a minimum of $24,000 for homes valued near $1.5 million.

Housing Minister Rob Flack said the change supports both buyers and the construction industry. “This is good news not only for first-time homebuyers, but also for workers and tradespeople who can keep doing what they love—building their communities,” Flack said.

The rebate would align with the federal First-Time Home Buyers’ GST/HST Rebate and depend on the passage of related federal legislation. The province said it will work with Ottawa to make the rebate available for agreements signed on or after May 27, 2025, with construction starting before 2031 and completion before 2036.

The announcement comes as Ontario increases investments to spur housing development. The government recently boosted its Municipal Housing Infrastructure Program to $4 billion and expanded the Building Faster Fund to $1.2 billion to support new housing and infrastructure projects.

More details on the initiative and the province’s broader economic plan will be released in the 2025 Ontario Economic Outlook and Fiscal Review on November 6.