Unlock Your HST Savings
with Marz Homes
A major advantage for first-time homebuyers is now on the table. New proposed rebates from the Federal and Provincial governments could mean real savings on your new home. Under the new proposal, HST in Ontario would be removed on new homes priced up to $1M, with reduced tax on new homes between $1M and $1.5M. This gives first-time buyers a clearer, faster path to homeownership.
→ When you buy a new home from a builder, the price usually already includes HST (13%),
which is made up of:
• 5% federal tax, and
• 8% provincial tax
→ Most builders in Ontario show their prices as “HST included, net of rebates.
Here’s what that means:
• The provincial government gives new home buyers a New Housing Rebate that refunds part of the HST up to $24,000 – if the home will be your primary residence.
• Instead of you applying for that rebate later, Marz Homes applies for it on your behalf.
• To make this possible, you “assign the rebate” to Marz Homes meaning you are allocating the rebate towards the total HST payable for your new home which will be paid on your behalf by Marz Homes at closing.
If you don’t qualify for the rebate (for example, you’re buying the home as a rental or investment), you are not eligible for the rebate at closing, and the lawyer will add the $24,000 back to your purchase at closing.
→ In simple terms:
• If you are living in the home > you qualify and pay the lower “HST included” price.
• If you are renting or investing > you will pay about $24,000 more at closing, but may apply after closing for the New Residential Rental Property Rebate to recover some or all of it. (however NOT $24,000 more than what is on the current price sheet)
• If you are a first-time homebuyer > the government has announced new rebates that could refund even more of the HST on homes under $1 million once they become law.
Status on Federal HST Program:
*As of January 2026
Bill C-4, the legislation that contains the GST Rebate for First-Time Home Buyers, has finally passed through all stages of the House of Commons. However, the Senate adjourned for winter recess, and will not return until February 3. Because Bill C-4 cannot receive Royal Assent without being passed by the Senate, the GST relief remains on hold. Once Bill C-4 receives Royal Assent, the Canadian Revenue Agency should quickly issue instructions on how builders and buyers can proceed. The Canadian Revenue Agency cannot release these details before the Bill is enacted.
Status on Provincial HST Program:
Per the Ontario government’s press release, Details of Ontario’s proposed new rebate are based on the federal government’s proposal as announced on May 27, 2025. Implementation of the new Ontario rebate is subject to passage of federal legislation and requires federal regulatory changes. Ontario will continue to monitor the status of the federal proposal as it progresses through the federal legislative process.
Marz homes continues to monitor these proposed changes, and will work with purchasers in accordance with the provisions set out in the Agreement of Purchase and Sale as further details are announced.
