TORONTO — First-time homebuyers in Ontario could soon see major savings under a new provincial plan to rebate the Harmonized Sales Tax (HST) on new homes.
The Ontario government announced that it will mirror the federal government’s recent proposal to remove its portion of the HST for eligible buyers. Under the federal plan, first-time buyers purchasing new or substantially renovated homes valued up to $1 million would receive a full rebate on the federal portion of the HST.
Homes priced between $1 million and $1.5 million would qualify for partial rebates on a sliding scale.
Finance Minister Peter Bethlenfalvy confirmed that Ontario’s rebate will be included in the upcoming fall economic statement, giving homebuyers a potential savings of tens of thousands of dollars.
The initiative comes as Ontario continues to fall behind its housing-start targets. Municipal Affairs and Housing Minister Rob Flack said the rebate aims to boost new home construction and make homeownership more accessible for first-time buyers.