Ontario First-Time Home Buyer HST Rebate 2025 | Ana Bastas Realty

Learn how Ontario’s First-Time Home Buyer HST Rebate works in 2025 — who qualifies, how much you can get back, and how to apply. Ana Bastas Realty explains your next steps.

 

by: Ana Bastas

 

 

Understanding Ontario’s First-Time Home Buyer HST Rebate (2025 Update)

Buying your first home is a huge milestone — but with Ontario’s rising prices, every dollar counts. Thankfully, first-time home buyers may be eligible for a financial break through the HST Rebate, a government program designed to make homeownership a little more attainable.

This rebate helps buyers recover a portion of the Harmonized Sales Tax (HST) paid on a newly built or substantially renovated home. Whether you’re buying directly from a builder or constructing your dream home, this rebate could return thousands of dollars to your pocket — money that can go toward moving costs, upgrades, or simply giving you a financial breather during the closing process.

What Is the HST Rebate?

The Ontario New Housing Rebate allows eligible buyers to receive a portion of the 13% HST they pay when purchasing a new or newly renovated property.
There are two parts to the rebate:

1. Federal Portion – Up to 36% of the federal 5% HST (on homes under $350,000, with partial rebates up to $450,000).

2. Provincial Portion – Up to 75% of the Ontario 8% HST (on homes priced up to $350,000, with gradual phase-outs beyond that).

For homes above these limits — especially in markets like Toronto or the GTA — the rebate may not cover as much, but it still offers meaningful savings for those purchasing in lower-priced regions or new developments.

Who Qualifies?

To qualify for the rebate, you must:

• Be a Canadian citizen or permanent resident;

• Be purchasing a newly built or substantially renovated home (not a resale);

• Intend to live in the home as your primary place of residence (not an investment property); and

• Not have previously owned a home or lived in one owned by your spouse or common-law partner.

If the home is purchased jointly, all owners must meet these conditions to receive the full rebate amount.

How Much Can You Get Back?

While the total amount varies, first-time buyers in Ontario can receive up to $24,000 in HST rebates (combined federal and provincial portions).
For example:

• On a $600,000 newly built home, you could be eligible for a rebate of approximately $19,000–$21,000, depending on your qualifying criteria and location.

How to Apply

You can apply for the rebate after closing using forms provided by the Canada Revenue Agency (CRA) and the Ontario Ministry of Finance, or have your builder apply on your behalf (common in new developments). If you purchase directly from a builder, confirm whether the HST rebate is already included in your purchase price — this is a common point of confusion.

For private builds or substantial renovations, applications are made directly through CRA, usually within two years of possession.

Why It Matters in 2025

With interest rates adjusting and affordability pressures easing slightly, the HST rebate can be the difference between qualifying for a mortgage or waiting another year.
For first-time buyers navigating deposits, closing costs, and moving expenses, it’s one of the most powerful incentives still available in Ontario’s housing landscape.

And with the Bank of Canada’s recent rate cut to 2.25%, the combination of lower borrowing costs and available rebates is giving many new buyers renewed confidence to enter the market before the year ends.

Buying your first home in Ontario is a major step — but programs like the HST rebate are here to help level the playing field.
Before making your move, talk to your mortgage advisor, lawyer, and real estate agent to ensure you understand how to apply and how it affects your purchase price and closing budget.

At Ana Bastas Realty, we help first-time buyers make smart, informed decisions — from calculating rebates to connecting you with trusted professionals every step of the way.

📞 289.670.5888 | 🌐 www.anabastas.ca

 

 

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