Ontario Announces Major HST Relief for First-Time Home Buyers - What It Means for You

For years, the dream of homeownership has been slipping further away for many young Ontarians. Between rising interest rates, limited inventory, and construction delays, getting that first foot on the property ladder has felt like a moving target.

Today, there’s finally some good news for first-time home buyers. The Government of Ontario has announced a major housing affordability measure - removing the full 8% provincial portion of the Harmonized Sales Tax (HST) for first-time buyers purchasing newly built homes valued up to $1 million.

That means up to $80,000 back in your pocket … a game-changer for those trying to make the leap from renting to owning.

As someone who works daily with first-time home buyers here in Oakville, I can tell you this kind of bold policy is long overdue and deeply needed.

A CLOSER LOOK AT THE NEW HST REBATE

Here’s what the change means in practical terms:

• If you’re a first-time buyer purchasing a new home (a condo, townhouse, or detached property) valued at $1 million or less, you’ll no longer have to pay the 8% provincial portion of the HST.

• For homes between $1 million and $1.5 million, the rebate will phase out gradually, following the same approach as the proposed federal HST rebate announced earlier this year. Combined, the two rebates could add up to more than $100,000 in total savings for some buyers.

That’s not just a tax break - it’s the difference between a dream deferred and a dream realized.

WHY THIS MATTERS

Buying a home in Ontario - especially in communities like Oakville, Burlington, and Mississauga - has become increasingly out of reach for young professionals and families.

In Oakville alone, the average new-construction home price often ranges between $900,000 and $1.4 million, depending on location and size. When you factor in land transfer taxes, closing costs, and the cost of living, many would-be buyers simply can’t make the math work.

This HST removal changes the equation. It could make pre-construction and new-build homes - previously off-limits to many - finally attainable.

It also creates a ripple effect. When first-time buyers enter the market, it frees up existing homes for move-up buyers, which supports overall market flow and stability.

SUPPORT FROM OREA & ONTARIO REAL ESTATE AGENTS

The Ontario Real Estate Association (OREA) has long been advocating for measures that help more Ontarians achieve homeownership.

In their official statement, OREA commended Premier Doug Ford and Ministers Peter Bethlenfalvy and Rob Flack for taking this step, calling it “a big win for first-time home buyers and the future of housing in Ontario.”

OREA has been consistent in its message: lowering housing costs and encouraging innovative pathways to homeownership are essential for a healthy market. This announcement directly aligns with that mission.

As a real estate professional, I’ve seen firsthand how government policy can either open doors or close them. Today’s move opens them.

WHAT THIS MEANS FOR BUYERS IN OAKVILLE

For buyers in Oakville where the combination of luxury design, family lifestyle, and strong community amenities make it one of the most desirable towns in the GTA, this policy is especially meaningful.

Developments that were once out of budget for first-time buyers may now be within reach. With builders launching new communities in North Oakville and River Oaks, this rebate could give new homeowners the push they need to secure a property while inventory remains competitive.

If you’ve been saving diligently, watching the market, and waiting for “the right time,” this announcement could be that turning point.

TIMING & WHAT COMES NEXT

While the provincial government has announced its intention to remove the 8% HST, the next steps involve implementation: updating legislation and aligning with federal rebate measures.

In the meantime, buyers planning to purchase in late 2025 or early 2026 should keep an eye on details as they emerge. Your real estate professionals and mortgage advisor can help you understand how these savings apply to your specific purchase.

As with any major financial change, the key is preparation. This is the moment to review your finances, speak with a trusted lender, and explore pre-construction or new-build opportunities before the market responds to increased demand.

A STEP IN THE RIGHT DIRECTION

As housing professionals, we know there’s no single fix to affordability - but this move represents real progress. Giving first-time buyers the support they need to enter the market creates momentum that benefits everyone.

Homeownership isn’t just about owning property; it’s about belonging, stability, and building generational wealth. For many, this change makes that dream more tangible than it’s been in years.

As a local Oakville broker, I’m thrilled to see the government taking meaningful action that aligns with what real estate professionals and buyers have been asking for. This decision not only helps individuals and families - it strengthens communities.

If you’re a first-time buyer wondering how this affects you, or if you’ve been considering new construction in Oakville, Burlington, or the surrounding area, now is the time to explore your options.

Because when opportunity knocks, especially in real estate, timing is everything.

Tatiana Colhoun

Real Estate Broker | Sutton Group Quantum Real Estate Inc., Brokerage

Helping you move with confidence and style.

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