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New PST Relief First-Time Home Buyers Can Now Save Up To $130,000
If you’re a first-time home buyer in Ontario, you’ll want to know about the new PST relief first-time home buyers can now save up to $130,000. This important change means big savings when buying a new home. The term new PST relief first-time home buyers refers to both federal and provincial tax relief being offered to eligible purchasers. In this blog we’ll walk you through what it means, who qualifies, and how this new PST relief first-time home buyers benefit can impact you.
What is the new PST relief for first-time home buyers?
The new PST relief first-time home buyers captures a major policy shift. Under recent Ontario budget proposals, the provincial portion of the HST on new homes will be fully rebated for qualifying first-time home buyers. At the same time, the federal government proposes a full 5% GST rebate for eligible new home purchases up to $1 million. Combined, these measures mean first-time home buyers can potentially save up to $130,000 on a new home purchase.
Who qualifies for this relief?
To benefit from the new PST relief first-time home buyers must meet certain criteria:
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They must be a first-time home buyer: meaning the individual (and spouse) did not own a home in the previous four calendar years.
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The property must be newly built (or from a builder) and used as your principal residence.
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The agreement of purchase must be entered into on or after specific dates (e.g., May 27, 2025 for the federal part).
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You must intend to occupy the home as your main residence and not use it as an investment.
How much can you save?
With the new PST relief first-time home buyers can now save up to $130,000 most likely under ideal conditions. Here’s how those savings stack up:
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The provincial portion (Ontario) could rebate the full 8% provincial HST on new homes up to $1 million for qualifying first-time buyers. That relief could translate into tens of thousands of dollars in savings.
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The federal portion (5% GST) being fully rebated for homes priced up to $1 million means potential savings of up to about $50,000.
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Combined, under ideal thresholds, the new PST relief first-time home buyers benefit might reach around $130,000.
Why is this such a big deal for Ontario home buyers?
The new PST relief first-time home buyers initiative is timely. In today’s market, buying a home is expensive. Every dollar of tax relief helps to make homeownership more accessible. This relief lowers initial costs, reduces the tax burden up front, and gives first-time buyers a financial boost. And for your brokerage clients, knowing about and being able to explain this relief is a strong marketing and service point.
If you’re buying your first home in Ontario, take a close look at the new PST relief first-time home buyers program. It could save you up to $130,000 under the right conditions. Work with trusted real-estate advisors and tax professionals to ensure you qualify and apply correctly. Ready to learn how you can benefit today? Contact our agents to learn more about how this relief works and how your home purchase could qualify.
