In a move aimed to help first-time homebuyers and spur construction of new homes, the Ontario government plans to waive its portion of the harmonized sales tax (HST) on certain new builds.
Finance Minister Peter Bethlenfalvy made the announcement on Tuesday. Under the proposal, to be formally introduced in next week's fall economic statement, the provincial government would rebate its full 8 per cent of the HST back to first-time buyers on new homes valued up to $1 million.
“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,” Bethlenfalvy said in a statement. “Ontario families deserve more money back in their pockets and we are continuing to build on our track record of doing just that.”
According to the province, the measure, when combined with existing provincial relief, could save buyers up to $80,000.
The proposed rebate mirrors one introduced by the federal government earlier this year. Ottawa vowed to rebate its 5 per cent portion of the HST on new and substantially renovated homes up to $1 million for first-time homebuyers.
The rebate is being applauded by the Residential Construction Council of Ontario (RESCON).
"RESCON has been advocating for an aligned GST/HST rebate for first-time homebuyers. We are grateful to the provincial government for their announcement today which implements this full GST/HST rebate of 13 per cent for first-time homebuyers in Ontario," said RESCON President Richard Lyall. "This is good news for the thousands of young people and families who have been struggling to realize the dream of new home ownership."
Implementation of the proposed Ontario rebate is subject to passage of federal legislation and requires federal regulatory changes, the province noted.
