Ontario HST rebate for first‑time home buyers is set to become a game‑changer in 2025. Under the Government of Ontario’s Fall Economic Statement, qualifying new‑home buyers will be eligible for a full rebate of the provincial 8 % portion of HST on homes up to $1 million—opening the door for significant savings. [1]

What the Rebate Means for Buyers

Under the proposed program:

• ✨ Full rebate of the 8 % provincial HST for first‑time buyers on new or substantially renovated homes valued up to $1 million. [2]
• 🔻 A phase‑out structure for homes priced between $1 million and $1.5 million—ensuring minimum tax relief of $24,000 in that range.
• 💰 Combined savings of up to ~$130,000 when paired with the federal rebate initiative. [3]

Eligibility & Important Dates

To qualify, buyers must meet conditions that align with the federal framework including: the purchase agreement must be signed between May 27, 2025 and March 2031; construction must begin before 2031 and substantially complete before 2036; and the home must be the buyer’s primary residence. [3]

Why It Matters for the Ontario Housing Market

With average home prices across Ontario hovering around $850,000 in 2025, this kind of tax relief could shift the affordability landscape for young families and new buyers. At the same time, it is designed to stimulate new home construction—with investments in infrastructure and faster‑build programs amplifying the effect. [4]

Reactions from Industry & Municipal Leaders

Industry associations and municipal groups have praised the move. Residential Construction Council of Ontario (RESCON) called it “good news for young families”. Meanwhile the Building Industry and Land Development Association (BILD) noted it could boost new‑home demand in a market that’s struggled with declining supply. [5]

FAQs About the Ontario HST Rebate

1. Does this apply to resale homes?
   No—this rebate specifically targets new homes or substantially renovated homes. Existing resale homes do not qualify.
2. What happens if I’m not a first‑time buyer?
   The buyer must meet the first‑time home buyer definition aligned with federal guidelines (no ownership in the 4 preceding calendar years). [9]
3. Will construction timing impact eligibility?
   Yes—construction must begin before 2031 and substantially complete before 2036 to qualify.

Sources:

1. Ontario Lowering Costs for First‑Time Home Buyers (Laurie Scott MPP)
2. How to Apply for the New Housing HST Rebate in Ontario (ANK Tax)
3. GST Relief for First‑Time Home Buyers (Dentons)
4. Ontario.ca – Housing Affordability Policy Investments
5. BILD – Tax Fix Could Instantly Drop New Home Prices

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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