Buying a newly built home in Ontario in 2025 has its advantages — not just in modern design and energy efficiency, but in available financial incentives. From federal GST/HST rebates to builder perks and provincial programs, understanding the full scope of new home incentives in Ontario can save buyers tens of thousands. This guide breaks down what to look for, how to qualify, and what’s changing this year.

1. GST/HST New Housing Rebate

If you’re buying a new or substantially renovated home from a builder, you may be eligible for a rebate on the federal portion of the HST. In 2025, this rebate continues to cover up to 36% of the GST paid on homes costing $350,000 or less — phasing out by $450,000. [1]

• Applies only to primary residences (not rentals or second homes)
• May be assigned to the builder, reducing your closing costs
• Ontario also offers a provincial portion rebate (up to 75% of the 8% PST)

2. Builder Incentives in 2025

Ontario developers are responding to slower pre-construction sales by offering attractive perks to qualified buyers. These vary by project and builder but may include:

• Cash-back at closing: Ranges from $5,000–$25,000 depending on unit type and location
• Free upgrades: Kitchen packages, appliance bundles, or luxury flooring
• Parking & locker waivers: Often worth $20,000+ combined in urban condos
• Extended deposit structures: Lower upfront payments spaced out over 12–24 months

Always ask for a complete incentive sheet and verify if offers are limited-time or capped by sales quotas.

3. Energy Efficiency & CMHC/Green Home Incentives

If you’re purchasing an energy-efficient home — especially one that meets ENERGY STAR, R-2000, or Net Zero standards — you may qualify for additional rebates and lower mortgage insurance premiums through CMHC or Sagen. [2]

• Up to 25% refund on mortgage insurance premiums
• Municipal top-ups in certain cities for Net Zero construction
• Utility rebates from Enbridge or Hydro One for efficient HVAC or insulation upgrades

4. First-Time Home Buyer Programs (Stackable)

First-time buyers purchasing a new build can often combine builder incentives with government support programs:

• Ontario Land Transfer Tax Rebate: Up to $4,000 for eligible buyers
• RRSP Home Buyers’ Plan: Withdraw up to $60,000 tax-free for your down payment
• Tax-Free First Home Savings Account (FHSA): Contribute up to $8,000 annually with tax deductions and tax-free withdrawals

5. How to Compare Incentives Across Projects

Not all incentives are created equal. Use a side-by-side spreadsheet to compare:

• Total financial value of incentives vs. price per square foot
• Flexibility of deposit structure
• Any impact on occupancy date, upgrade timelines, or resale restrictions

Sources:

1. GST/HST New Housing Rebate — Canada Revenue Agency
2. CMHC Green Home Program
3. Ontario Land Transfer Tax Refund
4. RRSP Home Buyers’ Plan — CRA
5. Tax-Free First Home Savings Account (FHSA)

Sanjeevan

CTMO

Sanjeevan Premkumar is the Chief Technology & Marketing Officer at Bridge, specializing in digital strategy and real estate market research. He combines technical insight with a deep understanding of the property sector.

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