ONTARIO NEWS RELEASE: Ontario Lowering Costs for First-Time Home Buyers

“In the face of tariffs and global economic uncertainty, it’s never been more important to make life more affordable for the hardworking people of Ontario. 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,” said Peter Bethlenfalvy, Minister of Finance. “Ontario families deserve more money back in their pockets and we are continuing to build on our track record of doing just that.”

Earlier in 2025, the Ontario government called on the federal government to introduce further measures in collaboration with the province to address housing affordability, including removing the HST for first-time homebuyers. Subject to passage of federal legislation, Ontario’s new rebate would mirror the federal government’s First-Time Home Buyers’ GST/HST Rebate to temporarily remove the full 8 per cent provincial portion of the HST for first-time home buyers on qualifying newly built and substantially renovated homes.

“Our government is working every day to bring the dream of homeownership within reach for more people. Today’s announcement is good news not only for first-time homebuyers, but for workers and tradespeople who can keep doing what they love – building their communities,” said Rob Flack, Minister of Municipal Affairs and Housing. “The actions we’re taking today complement our legislation and is just one more way we are protecting Ontario by creating the conditions to build.”

The new Ontario rebate would be available in addition to the existing Ontario HST New Housing Rebate, which already provides relief of up to $24,000 to eligible purchasers, including but not limited to first-time home buyers. Together with Ontario’s existing HST New Housing Rebate, the new Ontario rebate would provide relief of the full 8 per cent provincial portion of the HST on qualifying new homes valued up to $1 million for first-time home buyers. For homes valued between $1 million and $1.5 million, the new rebate would follow the phased reduction under the proposed federal rebate. That means the rebate would be gradually reduced as the price of a new home increases from $1 million to $1.5 million, to a minimum of $24,000 for homes valued between $1.35 million and $1.5 million. This ensures that the combined amount of relief available under both Ontario rebates would not be less than the amount that is currently provided through the existing Ontario HST New Housing Rebate.

The province is also making record investments to support new home construction and keep the dream of homeownership alive, including through its recent increase of the Municipal Housing Infrastructure Program to $4 billion and the $1.2 billion Building Faster Fund.

More information about the government’s plan to protect Ontario, grow our economy and make Ontario the most competitive jurisdiction of the G7 to invest will be included in the 2025 Ontario Economic Outlook and Fiscal Review, to be released on Thursday, November 6, 2025.