There’s exciting news for first-time home buyers in Ontario — especially those exploring new construction homes in Newmarket, Aurora, and across York Region and Simcoe County.
As part of the 2025 Fall Economic Statement, the Government of Ontario has proposed a new HST rebate to make homeownership more affordable. The proposal would rebate the full 8% provincial portion of the HST for first-time home buyers purchasing qualifying newly built or substantially renovated homes valued up to $1 million.
When combined with the federal government’s proposed removal of its 5% HST portion, total savings could reach up to $130,000 — a significant boost for those hoping to enter Ontario’s housing market.
You can read the full announcement directly from the Government of Ontario here.
What the New HST Rebate Means
If this proposal is approved, eligible first-time buyers of new construction or substantially renovated homes would:
Receive a full 8% rebate on the provincial portion of the HST for qualifying homes up to $1 million.
Benefit from the federal removal of its 5% HST, creating a combined 13% total tax savings.
That means a buyer purchasing a new home valued at $1 million could save up to $130,000 — making new construction properties far more attainable for first-time buyers.
Why It Matters
This new rebate proposal mirrors the federal First-Time Home Buyers’ GST/HST Rebate and is designed to:
Reduce upfront costs for first-time home buyers,
Encourage new housing construction, and
Support overall housing affordability in Ontario.
It’s important to note that this rebate applies only to qualifying newly built or substantially renovated homes, not to resale properties.
That distinction makes it especially valuable for anyone considering pre-construction homes, new builds, or builder-completed inventory homes in the coming year.
Other Cost-Saving Programs for Ontario’s First-Time Buyers
Even if you’re not purchasing new construction, Ontario offers several programs to help first-time buyers reduce costs and improve affordability:
Ontario Land Transfer Tax Refund: Receive up to $4,000 back on your land transfer tax when buying your first home.
First Home Savings Account (FHSA): Contribute up to $8,000 per year, tax-free, toward your down payment (with a $40,000 lifetime limit).
Home Buyers’ Plan (HBP): Withdraw up to $35,000 from your RRSP tax-free to use toward your down payment.
Used together, these programs can make a noticeable difference in what you’re able to afford — whether you’re buying a condo in Aurora, a townhome in Newmarket, or a detached home in East Gwillimbury.
Why Now Is a Smart Time to Start Planning
With new incentives on the horizon, this could be an ideal time to start preparing.
Even if you’re still in the planning stage, here are a few steps to take now:
Explore new communities and developments in your preferred area.
Get pre-approved to understand your budget and buying power.
Learn about rebate eligibility so you can take full advantage of available savings once the changes take effect.
Many buyers are surprised to find that new construction homes — once considered out of reach — may now be financially feasible under this proposal.
The Bottom Line
Ontario’s proposed HST rebate for first-time home buyers of new construction homes represents one of the most meaningful affordability measures in recent years. If passed, along with the matching federal legislation, it could save eligible buyers up to $130,000, making homeownership more achievable while also boosting new home construction across the province.
For full details, visit the official Ontario government release:
👉 Ontario Lowering Costs for First-Time Home Buyers
If you’re planning to buy your first home in Newmarket or the surrounding York Region area, this is a great time to learn how these changes may affect your options in the local real estate market.
