If you’ve been dreaming about owning your first home in Ottawa, 2025 might finally be your year.

The government has rolled out a major new rebate that could make buying a brand-new home thousands of dollars cheaper — and possibly even tax-free if the province joins in.

Let’s break it down in simple terms.

🧾 New Homes Have 13% HST — Here’s What That Means

When you buy a new home in Ontario, the price already includes 13% HST (tax):

    •    5% GST (federal portion)

    •    8% provincial portion (Ontario)

Builders always include that tax in the sticker price — so when you see a new home for $600,000, it already has the HST built in.

💵 The Old Rebate (Before 2025)

Before now, most buyers received a partial rebate of that HST, worth around $25,000 to $30,000.

Builders usually claimed that rebate for you, which is why they often say “the rebate is already included.”

That was the standard system for years.

🚀 The New 2025 Change — Full GST Rebate

Starting May 27 2025, the federal government introduced the First-Time Home Buyer GST Rebate.

If you’re buying your first home, you can now get the full 5% GST refunded on new homes priced up to $1 million.

✅ Example:

If your new build costs $450,000, you’ll receive about $22,500 back after closing.

That’s real cash refunded from the government — not just a builder discount.

The rebate phases out between $1 million and $1.5 million, and homes above $1.5 million don’t qualify.

🏡 Why Builders Say “It’s Already Priced In”

Builders are referring to the old rebate (the one every buyer gets).

The new GST rebate is extra, available only to first-time buyers, and it’s money you’ll receive after closing — not something hidden in the builder’s price.

🌟 The Provincial Match — Coming Soon

Ontario has announced plans to match the federal rebate by refunding the 8% provincial portion too.

If that happens, first-time buyers would effectively get the full 13% HST back — making new homes under $1 million tax-free.

That’s a potential savings of:

    •    $22,500 back on a $450,000 home

    •    $37,500 back on a $750,000 home

    •    $45,000 back on a $900,000 home

And if Ontario follows through — double those numbers.

🧭 What It Means for Ottawa Buyers

For communities like Barrhaven, Kanata, Riverside South, Orleans, and Findlay Creek, this is a big opportunity.

With interest rates easing and these rebates on the horizon, new construction is becoming much more affordable for first-time buyers.

🤝 Let’s Make It Work for You

If you’re planning to buy in 2025 or 2026, this rebate could be a game-changer.

I can help you:

    •    Confirm your eligibility,

    •    Work directly with builders to apply the rebate properly, and

    •    Make sure you don’t miss a single dollar you qualify for.

📞 613-805-1111

🌐 murtazahomes.com

Murtaza Siddiqui — Your Real Estate Broker