Here’s What You Need to Know About the “No HST” Announcement on New Homes
There’s exciting news for Ontario’s first-time home buyers — the province has officially announced plans to remove the 8% provincial portion of HST on new homes purchased by eligible first-time buyers.
This move aims to make homeownership more attainable in a market where high prices and interest rates have made affordability a major challenge. Let’s break down what this means, who qualifies, and how buyers can take advantage of this opportunity.
💡 What Is the HST Rebate for First-Time Buyers?
Currently, new homes in Ontario are subject to 13% HST, which includes a 5% federal and 8% provincial portion.
Under the new program, first-time buyers purchasing a new home (or a substantially renovated home) that will be used as their primary residence can receive a full rebate of the 8% provincial portion of HST.
That effectively means no HST on the Ontario portion, resulting in tens of thousands of dollars in savings, depending on the purchase price.
🏠 Who Qualifies for the Rebate?
To qualify for the full rebate, buyers must meet the following key criteria:
You are a first-time home buyer — meaning you’ve never owned a home anywhere in the world.
You’re buying a new or substantially renovated home directly from a builder.
The home will be your primary residence (not a rental or investment property).
You or a related individual (such as a spouse or common-law partner) will occupy the home.
Note: Even if you’re not a first-time buyer, the federal and provincial partial HST rebates still apply for most new-home purchases — but this new rule provides full relief for first-time buyers.
💰 How Much Could Buyers Save?
Let’s put this in perspective. On a $600,000 new home:
HST = $78,000 (13%)
8% provincial portion = $48,000
Rebate = $48,000 back in your pocket (for qualifying first-time buyers)
These savings can make the difference between affording a starter home or being priced out — especially for buyers struggling with down payments and closing costs.
📅 When Does It Take Effect?
The Ontario government announced the plan in fall 2025, with details on implementation expected soon. Buyers should pay close attention to:
Contract dates — the rebate will likely apply to agreements signed after the official launch date.
Builder credits — many builders may apply the rebate directly to the purchase price.
Claim process — buyers can also claim the rebate after closing through the CRA if not credited upfront.
⚠️ A Few Important Details to Remember
The program applies to new construction or substantially renovated homes only — resale homes do not qualify.
Buyers must maintain the property as their primary residence for a set period (typically 12 months).
Federal rebates (5% GST portion) remain in effect and can often be stacked with the new provincial relief.
🧭 What This Means for You
If you’ve been waiting to make your first home purchase, this announcement could be your green light. The savings on the HST portion alone could help offset rising interest costs or even make homeownership finally possible.
At Team Apex Real Estate, we help first-time buyers understand every incentive available — from HST rebates to CMHC programs and new-build advantages. Our goal is to help you make confident, informed decisions every step of the way.
📞 Thinking about buying your first home? Let’s chat about how this rebate can impact your purchase and what opportunities are available in your area.
🏡 Final Thoughts
This new HST rebate marks a major step toward improving affordability for Ontario’s next generation of homeowners. Whether you’re eyeing a pre-construction condo, a brand-new townhome, or a detached home in a growing community, understanding how this rebate works could save you thousands.
Stay tuned — we’ll keep you updated as soon as the full program details are released.