Do first-time home buyers pay HST when buying a home in Ontario?

HST treatment depends on whether the home is newly constructed or a resale property. For resale homes (previously owned and occupied), HST does not apply to the purchase price regardless of whether you are a first-time buyer or not.

For newly constructed or substantially renovated homes, HST does apply to the purchase price. First-time buyers who intend to occupy the home as their primary residence qualify for the New Housing Rebate under the Excise Tax Act, which reduces the HST burden. Builders typically factor this rebate into the purchase price for owner-occupier sales — the agreement will state whether the price is inclusive or exclusive of the HST rebate.

Being a first-time buyer does not itself create any additional HST exemption beyond what other owner-occupiers receive for new construction. The key distinction is always new construction versus resale, not first-time versus repeat buyer. Your lawyer will confirm how HST is handled in your specific transaction.