If you have been monitoring the Ontario real estate market, you know that March 25, 2026, marked a potential turning point for housing affordability. On that day, the Province announced a massive shift in how HST is handled for new builds. Today, we have even bigger news: Bill 114, the HST Relief Implementation Act, has officially received Royal Assent as of May 12, 2026.

This legislation effectively creates a bridge for buyers and builders, offering a once-in-a-generation tax break. This would bring a potential $130,000 in your pocket.

The Math: How the $130,000 is Calculated

The reason you’re hearing the “$130,000” figure is that this new legislation harmonizes a provincial “top-up” with federal relief.

1. The Provincial Side: Ontario is rebating the full 8% provincial portion of the HST (capped at $80,000).
2. The Federal Side: In partnership, the federal government is rebating the 5% portion (capped at $50,000).
3. Total Benefit: For a home priced at $1,000,000, the total rebate is exactly $130,000, effectively making the home “HST-free” for the purchaser.

What This Means for Purchasers of New Builds

This is a temporary measure designed to move inventory and get families into homes. To benefit from this law, your timing must be precise:

• The Signing Window: Your Agreement of Purchase and Sale (APS) must be signed between April 1, 2026, and March 31, 2027.
• The Savings: For a $1 Million home, you could save the full $130,000. If your home is between $1M and $1.5M, that $130,000 rebate is a flat “win” for your closing statement.
• Not Just for First-Timers: This is a common point of confusion. This specific 2026 expansion applies to all eligible buyers moving into a new primary residence, not just those buying their first home.

Alignment with First-Time Home Buyer Rebates

It is important to note that this 2026 expansion lives alongside the previously announced First-Time Home Buyer (FTHB) rebate. If you are a first-time buyer entering an agreement between March 20, 2025, and December 31, 2030, you may have access to both provincial and federal supports. Our team can help you determine which program offers the maximum benefit for your specific purchase price

How Rabideau Law Can Help

While the law has passed, the “paperwork” often lags behind. Currently, many government agencies and builders are still updating their internal forms. This is where we come in. We proactively assist our clients in following ways-

1. We review your Agreement of Purchase and Sale to ensure your contract includes the specific language needed to protect your right to this $130,000 credit
2. We coordinate with builders to ensure the $130,000 credit is correctly applied to your Statement of Adjustments.
3. We use virtual signing to keep things flexible for your schedule, but we’re always a phone call away to explain the “fine print” of Bill 114.

The market is moving again, and we want to make sure you get every dollar you’re entitled to. If you’re thinking about signing for a new build this year, let’s chat first to make sure your $130,000 is secure.