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2mo ago

Ontario Unveils HST Rebate for First-Time Buyers on New Homes Up to $1 Million

The targeted rebate will be included in the Fall Economic Statement with roughly $500 million set aside over three years.

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The Ford government’s decision to remove the eight per cent provincial sales tax for first-time home buyers on new homes is a good first step, home builders in Sudbury say.
Municipal Affairs and Housing Minister Rob Flack attends Question Period at Queen's Park in Toronto on May 13, 2025.

Overview

  • Housing Minister Rob Flack and Finance Minister Peter Bethlenfalvy announced Tuesday that Ontario will rebate the 8% provincial portion of HST for first‑time buyers of new homes priced up to $1 million.
  • Partial rebates will be phased in for new homes valued between $1 million and $1.5 million, confirming the policy stops short of a broader tax holiday.
  • The province estimates savings of up to $80,000 per qualifying purchase, rising to about $130,000 if a proposed federal rebate also takes effect.
  • The measure will be tabled in the Nov. 6 Fall Economic Statement, with approximately $500 million allocated over three years to fund the rebates.
  • Builder groups such as BILD and RESCON praised the move but urged extending PST relief to all new homes, while opposition leaders called the plan too limited for high‑price markets and insufficient to address supply.