Ontario's New HST Rebate for First-Time Buyers: Up to $130,000 in Combined Savings

Ontario announced a groundbreaking HST rebate for first-time buyers. Combined with the federal proposal, buyers could save up to $130,000 on new homes.

# Ontario's New HST Rebate for First-Time Buyers: Up to $130,000 in Combined Savings On **October 28, 2025**, Ontario announced a landmark proposal to rebate the full **8% provincial HST** for first-time home buyers on qualifying new homes. ## The Numbers: What This Means for You | Home Price | Federal GST Rebate | Ontario HST Rebate | **Total Savings** | | --- | --- | --- | --- | | $500,000 | $25,000 | $40,000 | **$65,000** | | $750,000 | $37,500 | $60,000 | **$97,500** | | $1,000,000 | $50,000 | $80,000 | **$130,000** | | $1,250,000 | $25,000 (phased) | $56,000 + $24,000 existing | **~$105,000** | ## How the New Rebates Work ### Federal GST Rebate (Bill C-4) - **100% of the 5% GST** rebated on qualifying new homes - Full rebate for homes up to **$1,000,000** - Phase-out from $1M to $1.5M - Passed House of Commons December 2025 ### Ontario Provincial Rebate (Proposed) - **100% of the 8% provincial HST** rebated - First-time buyers only - Applies to new construction and substantially renovated homes - Stacks with the existing $24,000 Ontario rebate for non-first-time buyers ## Who Qualifies? ### Federal GST Rebate - **Any buyer** purchasing a new home as their primary residence - No first-time buyer requirement - Must close after implementation date ### Ontario HST Rebate - **First-time buyers only** (never owned a home anywhere in the world) - New construction or substantially renovated homes only - Must be intended as the buyer's primary residence ## What This Means for the Market These rebates could significantly impact the pre-construction market: 1. **Increased demand** for new builds among first-time buyers 2. **Builders may adjust pricing** upward to capture some of the rebate value 3. **Resale market unaffected** — HST doesn't apply to resale homes ## Key Takeaway If you're a first-time buyer considering a new build, these combined rebates represent a historic opportunity. Work with your agent and lawyer to understand the timeline and ensure you structure your purchase to maximize savings.

Published by Circle Real Estate Brokerage — Toronto & GTA pre-construction and resale experts.