It's about to get a whole lot cheaper to buy a home in Ontario

If you've been patiently saving up money to one day fulfill your dreams of homeownership in Ontario, you'll be pleased to hear that the province will be removing the full 13 per cent of the Harmonized Sales Tax (HST) for eligible buyers of new homes valued up to $1.5 million. 

On Wednesday, the provincial government announced that eligible buyers of new homes will be able to take advantage of a maximum rebate of $130,000. The rebate would then decrease proportionally to a maximum of $24,000 for homes valued at $1.85 million or more. 

Last year, Ontario announced a proposal to remove the eight per cent provincial portion of the HST for first-time buyers of new homes valued up to $1 million, following the federal GST/HST First-Time Home Buyers Rebate. 

"In the face of tariffs and economic uncertainty, our government is working closely with the federal government to do everything we can to lower costs for families, keep workers on the job and build the most competitive, resilient and self-reliant economy in the G7," said Premier Doug Ford.

"Today's announcement will provide meaningful and significant relief to the people of Ontario, helping thousands more families realize the dream of homeownership and boosting Ontario's economy by $2.7 billion," he continued.

The federal government has agreed to partner with Ontario to support these housing initiatives. The cost-sharing arrangement would roughly cover the federal five per cent portion of the HST being removed. 

Ontario's plan will also enhance the existing provincial HST New Housing Rebate and New Residential Rental Property Rebate for one year, from April 1, 2026, to March 31, 2027, removing the HST for eligible buyers of new homes. 

Eligibility requirements for this rebate would remain the same, meaning the buyer must be using the home as their primary place of residence or as a residential rental property. 

"Ontario's proposed changes for first-time home buyers mean both the province and federal government's rebates would be available if the agreement of purchase and sale for a new home is entered into with the builder on or after March 20, 2025 and on or before December 31, 2030," the province wrote in a press release. 

More details on the expanded HST rebates for eligible buyers are set to be released following the 2026 Budget.