The Ford government is expecting to spend $470 million to give first-time Ontario homebuyers a tax break on new homes — a figure first revealed in Thursday’s fall economic statement.

The government’s fiscal update shows it is projecting to spend $35 million this year, $190 million in 2026-27 and $245 million in 2027 to give first-time homebuyers a significant $80,000 discount on homes under $1 million.

Officials with the Ministry of Finance weren’t able to say how many people they expected to use the rebate. They said they had come up with the funds for the program based on housing starts data.

The number of people using the program is expected to rise over time, partly because the government hopes the tax rebate will encourage more builders to focus on $1-million or less starter home

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