Ontario government has announced plans to offer a full 8% HST rebate on new homes priced up to $1 million, complementing the federal government’s 5% HST removal already in place.
These measures would completely eliminate the 13% HST on new builds — meaning no HST upto 1 Million $ for FTHB. This could translate to savings of up to $130,000 on a newly built home, making homeownership more affordable for thousands of first-time buyers across the province.
🏘 Who Qualifies?
First-time buyers who have not owned a home in the last four years
Purchasing a new or substantially renovated home
Homes priced up to $1 million for full savings; partial relief may apply for homes $1–1.5 million
Homes above $1.5 million are not eligible
🏛️ Federal Alignment and Eligibility for Ontario HST Rebate
The new Ontario rebate is based on the federal government’s May 27, 2025 proposal to eliminate the full federal portion of HST.
Implementation depends on federal legislation and regulatory changes.
To qualify, the agreement of purchase and sale must be signed on or after May 27, 2025.
Buyers must acquire the home for use as their primary residence, following federal eligibility rules.
❓ First-Time Buyer FAQ
Q: What counts as a “new” home?
A: Homes purchased directly from a builder or substantially renovated homes sold as new.
Q: Does this apply to resale homes?
A: No. Only new or substantially renovated homes qualify.
Q: How do I claim the rebate?
A: Builders often apply the rebate at closing. Buyers may also apply through the Canada Revenue Agency (CRA).
Q: Is there a price cap?
A: Full rebate for homes up to $1 million, phased reduction for $1–1.5 million homes. Homes above $1.5 million are not eligible.
📞 Ready to Buy in Ottawa?
If you’re looking for new home anywhere in Ottawa or surrounding area, I can help you find options that qualify for the full HST rebate, maximizing your savings and simplifying your first home purchase.
Contact Me today 613.404.8706 to start your journey into homeownership!
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