Source: Julia on Adobe Stock
The province is hoping to help new buyers enter the housing market. A government media release details a proposal to rebate the HST on home sales. First-time buyers would be able to receive it on homes built recently.
“Ontario families deserve more money back in their pockets and we are continuing to build on our track record of doing just that,” says Peter Bethlenfalvy, Ontario’s Minister of Finance.
Part of the 2025 Fall Economic Statement, the proposal aligns closely with one already passed by the federal government. Both aim to reduce the taxes paid by creating a rebate for GST/HST. The planned federal rebate is included in Bill C-4. It includes provisions on other matters, such as greenhouse gas emissions and the exemption of political parties from provincial privacy laws.
Homes valued anywhere up to $1 million would be eligible for the tax credits. Those between $1 to $1.5 million would see the rebate amount reduced. The credit would save buyers upwards of $80,000 in costs when combined with existing provincial relief, such as the Ontario HST New Housing Rebate. $50,000 of those savings would come from shaving off the 5 per cent on HST.
“Our government is working every day to bring the dream of homeownership within reach for more people. Today’s announcement is good news not only for first-time homebuyers, but for workers and tradespeople who can keep doing what they love – building their communities,” says Rob Flack, Ontario Minister of Municipal Affairs and Housing.
