What's Happening — and Why It Matters Right Now

If you're in the market for a new home in Canada, the last two weeks of March 2026 have brought some of the most significant tax relief announcements the housing market has seen in decades. Two separate programs have now been confirmed — one federal, one provincial — and together they represent a real opportunity to save a substantial amount of money on your purchase.

On March 13, 2026, the federal government's Bill C-4 received Royal Assent, officially making the First-Time Home Buyers' (FTHB) GST/HST Rebate the law of the land. Then, just days later on March 25, 2026, Ontario Premier Doug Ford announced a temporary measure that goes even further — eliminating the full 13% HST on new homes for all buyers for an entire year.

Below, I'll walk you through both programs — who qualifies, how much you can save, and what you need to do to take advantage.

The Federal First-Time Home Buyers' GST/HST Rebate

The federal rebate works by refunding the full GST — or the federal portion of the HST — that first-time buyers pay on a new home purchase. In most of Canada, that's 5% of the purchase price.

How much can you save? On a home priced at $1,000,000 or less, eligible first-time buyers receive a full rebate — up to $50,000 back. For homes priced between $1 million and $1.5 million, the rebate phases out gradually. At $1.25 million, for example, you'd still receive approximately $25,000.

Who qualifies? To be eligible, you must:

• Be a first-time home buyer (you have not owned a home as your principal residence in the past four years)
• Have a spouse or common-law partner who is also a first-time buyer
• Intend to use the home as your primary residence
• Have signed your agreement of purchase and sale on or after March 20, 2025, and before January 1, 2031

For owner-built homes, construction must begin on or after May 27, 2025, and the home must be substantially completed before 2036.

The rebate can only be claimed once per individual. If your spouse or partner has previously claimed it, you are not eligible. Now that the legislation has passed, builders can apply the rebate directly at closing in most cases — you may not need to file a separate claim. If your purchase closed before March 13, 2026, you'll need to apply directly to the CRA within two years of taking ownership.

Ontario's Two Provincial Programs

Ontario has not just matched the federal initiative — it has introduced two separate programs that together make this the most significant tax relief moment for new home buyers in the province's recent history.

Program One: Ontario First-Time Home Buyers' Provincial Rebate

Announced in October 2025, Ontario's provincial rebate mirrors the federal program but covers the 8% provincial portion of the HST. For first-time buyers on a home under $1 million, this means a full rebate of up to $80,000. Combined with the federal rebate, qualifying first-time buyers in Ontario can save up to $130,000 total — $50,000 federal plus $80,000 provincial. This program applies to agreements signed on or after March 20, 2025.

Program Two: Ontario's Temporary Full HST Removal (April 2026 – March 2027)

This is the headline announcement. For one year — covering agreements of purchase and sale signed between April 1, 2026 and March 31, 2027 — Ontario will eliminate the full 13% HST on eligible new homes. And crucially, this program is not restricted to first-time buyers. It applies to anyone purchasing a new home as a primary residence or a residential rental property.

• Homes priced at $1,000,000 or less: Full 13% HST eliminated — up to $130,000 in savings
• Homes between $1M and $1.5M: Flat $130,000 reduction
• Homes between $1.5M and $1.85M: Declining rebate from $130,000 down to $24,000
• Homes over $1.85M: Existing $24,000 provincial rebate still applies

How to Claim the Rebate — Step by Step

The process is more straightforward than most people expect. Here's what to do:

• Talk to your builder first. Now that federal legislation has passed, builders can apply the rebate directly at the time of closing for purchases going forward. Ask your builder whether they'll be crediting the rebate on your statement of adjustments.
• If your purchase closed before March 13, 2026 and you're a qualifying first-time buyer, you'll need to apply directly to the CRA using Form GST190. You have up to two years from the date of closing to do so.
• Confirm your eligibility in writing. Work with a real estate lawyer who can review your purchase agreement, confirm you meet all qualifying criteria, and ensure the rebate is properly reflected in your closing documents.
• Keep your records. Retain all purchase documentation, correspondence with your builder, and proof of intent to use the home as your primary residence.

What This Means for the Sarnia–Lambton Market

For buyers in the Sarnia-Lambton region, these programs arrive at an interesting moment. As we covered in our February 2026 market update, average prices in the area have moderated considerably — with the average sale price sitting at $421,186, down 21.7% year-over-year. With more inventory on the market than we've seen in years and prices at 2020 levels, the combination of a buyer's market and a once-in-a-generation tax relief window is notable.

For those considering new construction specifically — whether in Sarnia, Corunna, Petrolia, or surrounding communities — the savings available through these programs can meaningfully change the financial math of a purchase. A new home at $650,000 that would previously carry over $84,000 in HST could now be acquired with that cost eliminated entirely under the temporary program.

Whether you're a first-time buyer trying to get into the market or an existing homeowner thinking about a move-up purchase, understanding how these programs apply to your specific situation is an important first step. Tax rules have nuances, eligibility requirements are real, and the window — particularly for the Ontario temporary removal — is time-limited.