Ontario government proposes tax relief for some first

The Ontario government is proposing to help first-time homebuyers by lowering costs with a sales tax rebate it says could save up to $130,000, when combined with other provincial and federal saving initiatives.

The proposal, which will be included in next week’s fall economic statement, will rebate the eight per cent provincial harmonized sales tax (HST) for first-time buyers purchasing a home valued up to $1 million.

It comes after Ontario promised to follow suit if the federal government removed its portion of the HST for first-time homebuyers, which was proposed in June .

The provincial tax relief will help buyers manage financial challenges in a time where “every dollar counts," said Ontario Finance Minister Peter Bethlenfalvy at a news conference announcing the proposal Tuesday.