Yesterday, March 12, 2026, 2026 Housing Legislation — the 2026 Housing Legislation — received Royal Assent, officially becoming law. For Ontario New Home Buyers, this is one of the most significant housing affordability milestones in a generation. The legislation eliminates the federal GST on newly built homes for eligible New Home Buyers, and when combined with Ontario's matching provincial HST rebate program, the total potential tax savings reach up to $130,000.
If you're planning to buy a new construction home in Ontario — or you've already signed a purchase agreement since March 20, 2025 — you need to understand exactly what this rebate means, whether you qualify, and what steps to take right now. This is the complete guide.
What Is 2026 Housing Legislation and Why Does It Matter?
2026 Housing Legislation, formally titled the 2026 Housing Legislation, is omnibus affordability legislation introduced by the federal government following the April 2025 federal election. Its housing provisions amend the Excise Tax Act to create a new, temporary New Home Buyers' GST/HST rebate — fundamentally different from the existing GST/HST New Housing Rebate that has been in place for decades.
The existing program caps rebates at $6,300 and applies only to homes under $450,000 — thresholds that are virtually irrelevant in most of Ontario's housing markets today.
2026 Housing Legislation's new rebate applies to homes up to $1.5 million and can return up to $50,000 in federal GST. No income cap. No complicated housing market value phaseout below $450K. This is a wholesale replacement of the old framework for New Home Buyers specifically.
Why Royal Assent Matters Today
Until Royal Assent was granted on March 12, 2026, the CRA could not legally process rebate applications under 2026 Housing Legislation's new framework. As of yesterday, that changes. The CRA is now equipped to begin accepting and processing claims. If you signed a qualifying purchase agreement after March 20, 2025 and have already closed — or are about to close — you can now apply.
The Federal GST Rebate: Full Details
How much can you save?
The federal rebate under 2026 Housing Legislation eliminates 100% of the 5% GST on new homes priced up to $1,000,000, with a maximum federal rebate of $50,000. For homes priced between $1,000,000 and $1,500,000, the rebate phases out on a linear sliding scale.
- A $600,000 new home: you recover $30,000 in GST
- A $800,000 new home: you recover $40,000 in GST
- A $1,000,000 new home: you recover the full $50,000 maximum
- A $1,250,000 new home: you recover $25,000
What qualifies as a 'new home'?
The rebate applies to newly constructed homes and substantially renovated residential properties. This includes:
- Brand-new single-family homes, townhomes, and condominiums purchased from a builder
- Pre-construction units where ownership is transferred upon completion
- Substantially renovated homes where the renovation is at least 90% complete
Critical point: resale homes do not qualify. If you're buying an existing property from a private seller, this rebate does not apply to that transaction, regardless of when you close.
The eligibility timeline — don't miss these dates
The 2026 Housing Legislation rebate has specific date requirements that affect whether your purchase qualifies:
- Your agreement of purchase and sale must have been signed on or after March 20, 2025
- The agreement must be signed before January 1, 2031 (program end date)
- Construction must begin before January 1, 2031
- The home must be substantially complete before January 1, 2036
Ontario's Matching Provincial HST Rebate: What We Know
The federal rebate alone is transformative — but Ontario's proposed matching provincial rebate is where the full $130,000 combined savings figure comes from.
Ontario has proposed a parallel program that would eliminate the provincial 8% portion of the HST on qualifying new home purchases for New Home Buyers. This mirrors the federal structure: full rebate on homes up to $1 million (maximum $80,000), phasing out proportionally on homes up to $1.5 million.
⚠️ March 26 Update: Ontario Budget 2026
Ontario's 2026 Budget has officially tabled the legislative path for the matching provincial HST rebate. For a one-year window starting April 1, 2026, the combined rebate (Fed + Prov) will reach up to $130,000 for ALL buyers. This matches and exceeds the 2026 Housing Legislation framework for New Home Buyers. It is currently proposed legislation within the provincial budget.
The good news: because the Ontario proposal is closely modelled on the federal program, the eligibility criteria, application process, and property types are expected to align. Once the provincial legislation passes, buyers who qualified federally will very likely qualify provincially as well.
Combined Savings: What You Could Keep
The table below shows estimated maximum rebate amounts by home price, assuming both the federal rebate (now law) and Ontario's proposed provincial rebate are in effect. Use this as a planning guide — your actual rebate depends on individual eligibility.
| Home Price | Federal GST Rebate | Ontario HST Rebate* | Total Savings |
|---|---|---|---|
| $600,000 | $30,000 | $48,000 | $78,000 |
| $700,000 | $35,000 | $56,000 | $91,000 |
| $800,000 | $40,000 | $64,000 | $104,000 |
| $900,000 | $45,000 | $72,000 | $117,000 |
| $1,000,000 | $50,000 | $80,000 | $130,000 |
| $1,250,000 | $25,000 | $40,000 | $65,000 |
*Ontario provincial HST rebate is proposed legislation — not yet law as of March 13, 2026.
Want a precise calculation for your specific home price? Use our free Ontario HST Rebate Calculator — it's already updated to reflect the post-Royal-Assent federal rebate, with a toggle for the proposed Ontario match.
Who Qualifies: The Full Eligibility Criteria
To claim the 2026 Housing Legislation FTHB GST/HST rebate, every condition below must be true at the time ownership of the property is transferred to you:
You must be a New Home Buyer
To qualify as a New Home Buyer under this legislation, all of the following must apply:
- You are at least 18 years of age
- You are a Canadian citizen or permanent resident
- You have not owned a residential property that you occupied as your principal place of residence at any time during the current calendar year or the previous four calendar years — and neither has your spouse or common-law partner
The 'four previous calendar years' lookback is calculated from the calendar year of purchase. So if you're buying in 2026, you (and your partner, if applicable) cannot have owned and lived in a home you owned since January 1, 2022.
Important: the 'owned' criterion matters. If you owned an investment property but never lived in it as your principal residence, you may still qualify. Consult a tax professional to confirm your specific circumstances.
The home must meet property criteria
- It must be a newly constructed or substantially renovated residential property
- It must be used as your principal place of residence — vacation homes and investment properties do not qualify
- The purchase price must be under $1.5 million (rebate phases out between $1M and $1.5M)
- You must have entered into the purchase agreement on or after March 20, 2025
The Purchase Process
You pay the full HST-inclusive purchase price to the builder at closing — the rebate is not applied as a discount at the transaction. After ownership transfers, you (or your builder, on your behalf) submit a rebate application to the CRA. This is the same process as the existing GST/HST New Housing Rebate, which many builders already handle as a standard part of the closing process.
How to Apply: Step-by-Step
Step 1: Confirm your eligibility
Verify agreement date, home type, price, and first-time status. Consult your lawyer if unsure.
Step 2: Wait for updated CRA forms
CRA is updating Form GST190 and Form GST191. Check canada.ca for updates.
Step 3: Collect your documentation
Assemble signed APS, proof of status, Statement of Adjustments, and statutory declaration.
Step 4: Submit your claim
File via mail or online portal. Builders often assign the rebate to themselves — verify this in writing.
If You Closed Before Royal Assent
If ownership was transferred before March 12, 2026, apply directly with the CRA. Your builder cannot retroactively credit the rebate at this stage. Retain all closing documentation.
What This Means for the Ontario Housing Market
The timing of 2026 Housing Legislation's Royal Assent — the morning of March 12, 2026 — lands at the start of Ontario's spring real estate season. Expect heightened demand for pre-construction inventory as the effective price of new homes has dropped materially overnight.
Pre-con demand is about to spike
With up to $50,000 in immediate federal savings confirmed as law, the incentive stack is unprecedented. Over 70,000 Canadians signed agreements since March 20, 2025, and they are now seeing a significant retroactive financial reward.
Staging the Incentive Stack
The $222,500 Ultimate Stack
- ✅ 2026 Housing Legislation Federal GST Rebate: Up to $50,000
- ✅ Ontario Proposed HST Match: Up to $80,000
- ✅ Ontario Land Transfer Tax Rebate: Up to $4,000
- ✅ FHSA Down Payment Savings: Up to $40,000
- ✅ RRSP Home Buyers' Plan: Up to $60,000
- ✅ New Home Buyers' Tax Credit: $1,500
Frequently Asked Questions
Does 2026 Housing Legislation apply if I already closed?
Yes. If signed on or after March 20, 2025, you can claim directly with the CRA post-Royal-Assent.
When will Ontario's provincial HST rebate become law?
No fixed date yet, but it's a signaled priority at Queen's Park. Watch for updates here.
Official Sources: Department of Finance Canada, CRA, Parliament of Canada, Parliamentary Budget Office.
About the Author
Finley Grant is a Senior Housing Policy Analyst specializing in legislative reform and New Home Buyer opportunities in Ontario.