Ontario Helps First-Time Home Buyers Save Big on New Homes
Good news for anyone dreaming of buying their first home in Ontario!
The Ontario government just announced a big plan to make homeownership more affordable — especially for first-time buyers. Soon, people buying a brand-new home for the first time could save up to $130,000 in taxes and rebates.
Let’s break it down in simple terms.
💡 What’s Changing
The government plans to give back the full 8% provincial part of the HST for first-time buyers purchasing a new home worth up to $1 million.
That means if you buy a new home under this price, you could save up to $80,000 from Ontario’s side alone.
And when you combine that with the federal government’s 5% rebate, you could save another $50,000 — for a total of $130,000 in savings on your first new home.
🏡 Why This Matters
Buying your first home is one of the biggest steps in life — and one of the most expensive. Between high interest rates, construction costs, and inflation, many people have been feeling priced out.
This rebate helps bring the dream of owning a home closer to reality. It’s also designed to encourage builders to create more new homes, which helps everyone by increasing supply and easing housing shortages.
📅 When Will It Happen?
The plan will be included in Ontario’s 2025 Fall Economic Statement.
If everything is approved, the rebate would apply to agreements signed with builders on or after May 27, 2025, and before 2031.
To qualify:
Construction must start before 2031
The home must be mostly finished before 2036
The buyer must use the home as their primary residence
💰 How the Savings Work
Here’s a quick breakdown of how the rebate would look:
Home Price - Savings from Ontario (8%) - Savings from Federal (5%) - Total Savings
Up to $1,000,000 - Up to $80,000 - Up to $50,000 - Up to $130,000
$1,000,000–$1,500,000 - Reduced rebate - Reduced rebate - Minimum of $24,000
Even homes slightly above $1 million will still get some help — the rebate just slowly decreases until $1.5 million.
🛠️ Building More Homes for the Future
The province isn’t just helping buyers — it’s also putting record money into building more homes faster.
They’ve boosted:
The Municipal Housing Infrastructure Program to $4 billion
The Building Faster Fund to $1.2 billion
Both aim to make it easier for builders and cities to create the homes Ontario families need.
👷♀️ What This Means for You
If you’re thinking about buying your first home — especially new construction — this could be a huge opportunity to save money and get into the market sooner.
It’s also great news for the economy. These changes help not only buyers, but also construction workers, tradespeople, and local businesses who help build our communities.
🏁 The Bottom Line
Ontario is taking steps to make homeownership more affordable for first-time buyers.
By rebating the provincial HST portion, aligning with the federal program, and investing in housing construction, the government is helping more families turn their dream of owning a home into reality.
🏡 Thinking About Buying Your First Home?
If you’re planning to buy a new home or condo in Ontario, it’s a great time to understand how these rebates can help you.
At Q Real Estate Group, we specialize in guiding first-time buyers through every step — from mortgage planning to choosing the right community and negotiating builder incentives.
