Buying your first home or condo is one of life’s most exciting milestones. In today’s real estate market, though, it can feel out of reach for many. While home prices in the Greater Toronto Area have eased slightly over the past year, higher interest rates and everyday cost-of-living pressures continue to make saving for a down payment and managing monthly expenses a challenge. There’s good news, though! New federal and provincial measures aimed at lowering the cost of buying a first home are incredibly welcome for Canadians ready to take that important step toward ownership.
If approved, the proposed First-Time Home Buyers’ (FTHB) GST/HST Rebate could deliver significant tax savings — up to $130,000 in Ontario, when combined with the provincial relief program — on new homes and condos, helping more young buyers enter the market and supporting the construction of much-needed new housing across Ontario.
How the New Rebate Works
The FTHB GST/HST Rebate is a proposed measure that would eliminate the GST (or federal portion of the HST) on the purchase of a new home or condo priced up to $1 million for first-time home buyers. For homes valued between $1 million and $1.5 million, the rebate would gradually phase out. Homes priced above $1.5 million would not qualify.
In simple terms, this could mean savings of up to $50,000 on the federal side alone. The Ontario government has also proposed a rebate of the full 8% provincial portion of the HST for first‐time buyers of qualifying new homes. Combined with the federal relief, that’s where the potential $130,000 in total savings comes from. This represents a meaningful difference for those taking their first step into homeownership.
Finance Minister Peter Bethlenfalvy called the provincial measure “money back in the pockets of hardworking Ontario families,” noting that this kind of support can help more young people and families finally enter the housing market.
Who Qualifies
To be considered a first-time home buyer, you must:
- Be at least 18 years old
- Be a Canadian citizen or permanent resident
- Not have owned or lived in a home owned by you or your spouse/common-law partner in the current or previous four calendar years
At least one purchaser on the agreement must meet these criteria and intend to use the property as their primary residence. The rebate applies to newly built or substantially renovated homes, whether purchased from a builder, built on your own land, or through a co-operative housing corporation.
Applications aren’t open yet. The rebates will only take effect once the federal legislation receives Royal Assent, which is expected later this year.
Why This Matters
The rebate couldn’t come at a more important time. With higher interest rates and construction costs, the up-front expenses of buying a home have become a significant hurdle for many Canadians. Eliminating the GST/HST for first-time buyers provides immediate financial relief while also helping to encourage new home construction, which is something experts agree is urgently needed to address Canada’s housing shortage.
Industry leaders have praised the measure as a “step in the right direction.” The Residential Construction Council of Ontario noted that the combined rebate “will help to prevent younger talent and families from leaving the GTA” by making it easier to afford a new home.
While some advocates point out that more systemic changes are still needed, such as easing development fees and improving supply, this rebate represents meaningful progress toward affordability.
What Buyers Should Know
Once the legislation is in place, buyers will still pay HST at the time of purchase but can apply to the Canada Revenue Agency (CRA) for the new rebate afterward. Builders will be able to credit the rebate only for homes that close after the law is enacted.
The rebate will apply to qualifying purchase agreements made on or after May 27, 2025, and before 2031, with construction beginning before 2031 and substantially completed before 2036.
The Bottom Line
Homeownership remains one of the biggest financial milestones Canadians strive for, and these new rebates could make that dream a bit more achievable.
If you’ve been waiting for the right time to buy, this may be it. A new BAZIS condominium or townhome in Toronto could be your opportunity to take advantage of upcoming savings while investing in a modern, energy-efficient, and beautifully designed home built for your future.
Learn more about BAZIS’ current and upcoming communities and stay tuned for updates on when the new rebate officially takes effect.
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