Short answer
Ontario’s first-time home buyer rebate is now available and can provide up to $80,000 of relief from the 8% provincial part of HST for an eligible first home. It follows the federal first-time-buyer rebate’s eligibility conditions and applies to qualifying new, owner-built or substantially renovated homes—not an ordinary resale purchase.
The concern behind the question
A client reads about a combined $130,000 and assumes every Ontario first-time buyer receives it. The provincial maximum, federal maximum, home value, transaction dates and builder-credit treatment must be separated before the buyer relies on a number.
What the current rule says
- CRA states that the Ontario first-time-buyer rebate can provide up to $80,000 of the provincial part of HST.
- It follows the eligibility conditions for the federal first-time-buyer GST/HST rebate.
- It may apply when buying, building or substantially renovating a qualifying first home.
- The federal component has its own maximum of $50,000, producing the often-quoted combined maximum only where all applicable conditions and calculations support it.
- The buyer remains responsible for eligibility even when a builder pays or credits a rebate.
A practical Ontario example
Illustration only: An eligible first-time buyer purchases a qualifying Ontario new home for $950,000. The buyer may be within the full-value range, but Rajiv does not treat $130,000 as automatic closing cash. The builder agreement, tax calculation, CRA forms, occupancy and lawyer’s closing statement still need review.
Where buyers get caught
- Using the headline combined maximum without calculating the actual HST paid.
- Confusing this rebate with Ontario’s $4,000 land-transfer-tax refund.
- Assuming a rental or resale purchase qualifies.
- Signing a builder acknowledgment without understanding repayment liability if eligibility fails.
Where the lender decision is separate
This program does not approve the mortgage. An A lender still applies its own income, credit, debt-ratio, down-payment and property rules. When the down payment is below 20%, the lender normally submits the file to a mortgage insurer, and the insurer must also accept it. An alternative or B lender may take a broader view of income or credit, but usually requires more equity and may charge a higher rate and fees. MIC and private financing is normally a short-term, equity-based route with a clearly costed exit—not a first-time-buyer benefit.
Rajiv would compare the available route, total cash needed, monthly payment, conditions and exit plan. Government eligibility and lender approval answer different questions.
Do not let good money create a documentation problem
Keep the full trail for the deposit, down payment and closing money. If there is a large deposit, transfer or gift in the account during the lender’s review period, keep the statements and documents showing where it came from. Do not move the same money through several accounts unless there is a reason and a complete trail. A tax program may allow a withdrawal, but the lender and lawyer still need acceptable proof of funds.
Facts, assumptions and professional roles
The linked government source describes the public program. It does not state an individual lender’s underwriting policy. A lawyer should confirm the purchase contract, title and land-transfer-tax treatment. An accountant or qualified tax professional should confirm personal tax consequences. Rajiv’s role is to connect the verified mortgage file, closing cash and property to lenders whose current policies may fit.
Source checked 2026-09-07: Read the official government source.
What Rajiv would review before you rely on this
- Which definition of “first-time buyer” applies to the exact program?
- Is the home new, resale, substantially renovated or owner-built?
- Will it be your principal residence, and when will you occupy it?
- Is the benefit credited at closing, claimed later, or dependent on another form?
- Does your mortgage file still qualify without counting an expected refund?
Related AskRajiv pathways
Continue through the First-Time Buyer Rules Hub, the Mortgage Knowledge Centre, or the Real Estate Centre. If an offer is already accepted, use the closing-problem pathway before removing a condition or missing a deadline.
Get the first-home strategy checked
A rule can save money and still leave a financing gap if the timing, documents or property do not fit. Book a First-Home Mortgage Strategy Session with Rajiv Verma, Mortgage Broker. Bring the purchase timeline, income documents, available cash, registered-plan statements and any builder paperwork. Rajiv can identify what is confirmed, what is assumed and what must be checked before you commit.