If you’ve been watching the housing market in Ontario and waiting for the right moment to buy a new home, the federal government just made things a little easier. A brand-new First-Time Home Buyer GST/HST Rebate has been introduced — and it could mean tens of thousands of dollars in savings on your next purchase.

Let’s break down how it works, who qualifies, and what it means for Ontario home buyers.

🏠 What Is the New GST/HST Rebate?

For years, homebuyers in Ontario could apply for the New Housing Rebate, which refunded part of the federal (5%) and provincial (8%) portions of HST paid on new construction homes.

The new First-Time Home Buyer GST Rebate announced by the federal government in 2025 goes much further. It offers a full refund of the 5% federal portion of HST for qualifying first-time homebuyers.

Here’s the breakdown:

• ✅ 100% rebate on the federal portion of HST for new homes priced up to $1 million
• 🪜 Partial rebate (phased out) for homes priced between $1 million and $1.5 million
• 🚫 No rebate for homes priced over $1.5 million

That means for a $900,000 new home in Ontario, the federal tax portion (worth $45,000) could be completely refunded — a major savings boost for first-time buyers.

📅 When Does It Apply?

This new rebate applies to:

• Purchase agreements signed on or after May 27, 2025
• Homes where construction starts before 2031
• Homes completed and occupied before 2036

It’s also a one-time benefit, meaning you can only claim it once in your lifetime.

👤 Who’s Eligible in Ontario?

To qualify, you’ll need to meet several conditions:

• You’re a first-time home buyer (neither you nor your spouse/common-law partner has owned a home in the past four calendar years)
• You’re a Canadian citizen or permanent resident
• The home will be your primary place of residence (not an investment or rental property)
• The agreement is for a new or substantially renovated home — either from a builder or one you build yourself
• The home price is below $1.5 million

You’ll also need to meet standard CRA requirements under the existing New Housing Rebate program.

🏡 What About the Ontario Portion of HST?

Remember: Ontario’s HST is 13% total — made up of 5% federal GST and 8% provincial HST.

While the new rebate only affects the federal 5%, Ontario already offers a provincial new housing rebate that refunds up to $24,000 of the provincial portion of HST, regardless of the home’s price.

So, if you combine both:

• You could receive up to $45,000 off the federal tax portion
• Plus up to $24,000 off the provincial portion

👉 That’s potentially $69,000 in total HST relief for eligible first-time buyers in Ontario.

💬 Example Scenarios

Home Price	Federal HST (5%)	Federal Rebate	Provincial Rebate	Total Potential Savings
$800,000	$40,000	$40,000	$24,000	$64,000
$1,200,000	$60,000	~$20,000 (partial)	$24,000	$44,000
$1,600,000	$80,000	$0	$24,000	$24,000

🧾 How to Claim the Rebate

If you’re buying from a builder:

• Many builders will apply the rebate directly at closing, reducing the price you pay up front.
• Confirm in writing whether the builder is assigning the rebate to you or claiming it on your behalf.

If you’re building your own home:

• You’ll need to apply directly to the CRA after completion using the GST190 and related forms.
• Be sure to apply within two years of occupancy or completion.

Either way, keep all purchase agreements, invoices, and proof of occupancy — CRA may request documentation.

⚠️ Things to Keep in Mind

1. This program is still being finalized. The rebate is part of the 2025 federal budget and will be fully implemented once supporting legislation (Bill C-4) is passed.
2. It applies only to new builds or substantial renovations. Existing resale homes don’t qualify.
3. Assignment sales might not qualify. If you’re buying an assigned pre-construction contract, check the original signing date.
4. One-time only. Once you or your spouse claim this rebate, you can’t claim it again in the future.
5. Check for double eligibility. You may still be able to claim the existing provincial portion rebate even if the federal rebate is fully applied.

💭 Why This Matters for Ontario Buyers

Between rising construction costs and high interest rates, affordability remains a challenge for first-time homebuyers. This rebate is designed to put real money back in your pocket and encourage more new home construction across Ontario.

For many, it could be the difference between continuing to rent and being able to buy their first home.

👋 Final Thoughts

If you’re planning to buy a new home or pre-construction unit in Ontario, this rebate could be a game changer — but the rules and timing are strict.

✅ Tip: Speak with your realtor, mortgage broker, or accountant early to confirm eligibility and make sure your purchase agreement falls within the qualifying window.

Thinking about buying or building a new home in Ottawa or Stittsville?

As a local realtor with experience in new construction, I can help you navigate your options — from builder selection to understanding rebates and closing costs.

📲 Call or text me at 613-851-8132

🌐 www.chadfeatherstone.com

📸 Instagram: @feathersold