Ontario’s New HST Rebate Could Save First-Time Buyers Up to $80,000 on Newly Built Homes

Big news for first-time home buyers in Ontario! The provincial government has unveiled a major proposal designed to make homeownership more affordable, offering up to $80,000 in savings on the purchase of a newly built home.

As part of the 2025 Fall Economic Statement, Ontario is proposing to fully rebate the 8% provincial portion of the HST for first-time buyers purchasing new homes valued up to $1 million. This move aims to help more families achieve the dream of homeownership while encouraging the construction of more new homes across the province.

When combined with Ontario’s existing housing relief programs, eligible first-time home buyers could save up to $80,000 off the cost of a new build. And if the federal government’s proposed 5% HST rebate is also implemented, buyers could see even greater overall savings — making a significant impact on affordability.

Ontario’s Minister of Finance, Peter Bethlenfalvy, said this proposal is about helping hardworking Ontarians at a time when every dollar counts:

“Through our proposed HST rebate on new homes for qualifying first-time home buyers, we are leading by example – saving families money on one of the biggest financial transactions of their lives.”

The Minister of Municipal Affairs and Housing, Rob Flack, added that the initiative will not only benefit buyers but also boost opportunities for builders and tradespeople across the province.

This Ontario HST rebate would be available in addition to the existing Ontario HST New Housing Rebate, which already provides up to $24,000 in relief. Together, these programs would now cover the full 8% provincial HST on qualifying newly built homes up to $1 million.

For homes priced between $1 million and $1.5 million, the rebate would gradually decrease, ensuring that total relief remains at least equal to the current rebate level.

Beyond the HST rebate, the province continues to invest heavily in housing development, increasing the Municipal Housing Infrastructure Program to $4 billion and adding $1.2 billion to the Building Faster Fund,  all in an effort to support more home construction and keep ownership attainable for Ontario families.

Key Takeaway:

If approved, this new rebate could bring massive savings for first-time home buyers purchasing newly built homes, helping reduce upfront costs and making homeownership in Ontario more achievable than ever.

Ready to Make Your Move?

If you’re thinking about buying a newly built home and want to take advantage of this rebate, I’d love to guide you through the process. From understanding your eligibility to finding the perfect new build that fits your budget and lifestyle, I’m here to help every step of the way.

📞 Call or text me at 647-408-5226
🌐 Visit michaelkellyhomes.com to start your search for new homes today.

Let’s turn your first home purchase into a smart investment.