Ontario's HST Rebate Boost: What's Next for Aspiring Buyers?
Quick Takeaways
Big Savings Alert: Ontario's new proposal rebates the full 8% provincial HST on new homes up to $1M for first-time buyers—up to $80,000 back, plus $50,000 federal GST relief for a total of $130,000.
Who Wins?: First-timers (no home ownership in 4+ years) buying new or renovated homes; phased rebates up to $1.5M.
Timeline: Applies to deals from May 27, 2025, to 2030; construction starts by 2031.
Why Now?: Tackles affordability amid rising costs and low housing starts, aiming to spark more builds and help young families.
In a housing market that's felt like an uphill battle for too many young Ontarians, today's announcement from the provincial government brings a ray of hope. On October 28, 2025, Finance Minister Peter Bethlenfalvy unveiled a proposal to rebate the full 8% provincial portion of the Harmonized Sales Tax (HST) on new homes and substantially renovated properties valued up to $1 million—exclusively for first-time buyers. This isn't just a tweak; it's a potential $80,000 savings per purchase, stacking with the federal government's planned 5% GST rebate to deliver up to $130,000 in total relief.
Who Qualifies and How It Works
Set to be formalized in next week's Fall Economic Statement, this rebate mirrors the federal initiative proposed back in May 2025. It targets newly built or substantially renovated homes, with full exemptions for properties under $1 million and a phased reduction up to $1.5 million—adding another possible $24,000 in savings for those edging into higher price brackets^. First-time buyers, defined as those who haven't owned a home in the past four years (or ever)^^, stand to benefit most. As Housing Minister Rob Flack put it, this move aims to "make it easier for more first-time home buyers to afford a home where they can create cherished memories."
For context, Ontario's HST breaks down to 5% federal GST and 8% provincial, so this rebate wipes out the provincial slice entirely for qualifying deals. It's a direct response to skyrocketing costs, where the average new home price hovers around $1 million in the GTA, making that first step feel impossible for so many.
What's Next for Aspiring Buyers?
If you're a first-time buyer, now's the time to crunch numbers. As a realtor who's seen clients pivot from despair to delight, I believe this rebate could be the nudge that turns renters into owners.
The road to affordability is long, but moves like this show government's listening. What's your take—game-changer or just a start? Share your thoughts, and if you're house-hunting, let's chat about how this fits your story.
Alvin Fung is a realtor with HomeLife/GTA Realty Inc., helping clients navigate Toronto's dynamic market.
^ https://news.ontario.ca/en/release/1006665/ontario-lowering-costs-for-first-time-home-buyers#resources
^^ First-time home buyer – you will be considered to be a first-time home buyer if you did not, at any time in the current calendar year before the withdrawal (except the 30 days immediately before the withdrawal) or at any time in the preceding four calendar years, live in a qualifying home (or what would be a qualifying home if located in Canada) as your principal place of residence that either you owned or jointly-owned, or your current spouse or common-law partner (at the time of the withdrawal) owned or jointly-owned. For example, if you are making a withdrawal on July 31, 2025, the period is from January 1, 2021 to June 30, 2025. (canada.ca)
