Big Savings! Jackpot For First-Time Home Buyers

There’s a silver lining amid challenging times! While rising inflation, an economic slowdown, and the potential threat of tariffs have created difficulties for many Canadians, they have also served as a wake-up call for federal and provincial governments to take action. And they did.

Newly elected Prime Minister Mark Carney responded promptly. In his message to Edmontonians posted on his website on March 20, 2025, he made a clear promise:

“Our government is focused on lowering costs for Canadians and making homeownership a reality. By eliminating the GST (specific to Alberta), we aim to save first-time homebuyers money and stimulate housing construction across the country. It’s time for decisive action to address the housing crisis and to build an affordable Canada.”

In a swift response, Ontario announced that if the federal government waived its portion of the HST for first-time homebuyers, the province would eliminate its own 8% HST on home purchases.

Today, it was confirmed that the federal and provincial governments have reached a mutual understanding on this issue, allowing Ontarians to save thousands when buying their first homes.

How Will It Work?

·       This rebate will be available to all first-time homebuyers (FTHBs) in Ontario.

·       Ontario will waive the full 8% portion of the HST on home purchases, resulting in potential savings of up to $80,000 when combined with federal and provincial savings.

·       Additionally, first-time homebuyers can benefit from the existing Ontario HST New Housing Rebate of up to $24,000, which is available to eligible purchasers.

·       These savings apply to qualifying new homes valued up to $1 million. For homes exceeding $1 million, the rebate will gradually decrease.

·       Hon. Peter Bethlenfalvy, Ontario’s Finance Minister, assured that this provincial rebate will be included in next week’s fall economic statement.