TORONTO — Some first-time homebuyers in Ontario could soon save tens of thousands of dollars on the cost of a home under a proposal from the provincial government to rebate the HST.
The Ontario government had previously signalled that if the federal government removed its portion of the harmonized sales tax for first-time homebuyers, the province would follow suit.
The federal government proposed earlier this year to rebate the federal portion of the HST on new and substantially renovated homes valued up to $1 million for first-time homebuyers.
Finance Minister Peter Bethlenfalvy says Ontario’s provincial rebate will be in next week’s fall economic statement.
While homes valued up to $1 million would qualify for the full rebate, there will be partial rebates on a phased-in basis for homes valued up to $1.5 million.
Ontario is behind its goals on housing starts and Municipal Affairs and Housing Minister Rob Flack says the move will help spur new home construction.
