menu

Substantial Home Renovations Are Eligible For An HST Rebate

Substantial Home Renovations Are Eligible For An HST Rebate

Canada Revenue Agency has specific definitions for what is considered a “substantial renovation” and a “major addition”. These definitions relate to eligibility requirements for individuals who want to claim an HST rebate. For purposes of clarity, various types of residential buildings are defined, including those converted to be residential. Like other rebate programs, CRA outlines the time limitations for individuals who are claiming rebates.Sometimes referred to as a “new” housing rebate, substantial renovations on existing homes may qualify for a rebate. Only the individual who owns the property can claim the rebate, regardless of whom actually does the renovation work. Whatever the case, the terms “major addition” and “substantial renovation” are critical in definition for homeowners, builders and landlords. There are also specific descriptions of what “residential” means.

There are a number of methods deemed acceptable when determining a “substantial renovation”. CRA considers it reasonable to compare the renovated square footage of floor space with total overall floor space. A renovation that is less than 90% will not meet the defined requirements. Another approach to measuring is to compare the number of rooms that have been renovated with the total number of rooms (also must be at 90%).

As a rule, CRA expects fair and reasonable calculations of a “substantial renovation”. It’s therefore incumbent on the claimant to present supporting documentation that will satisfy all of the requirements, and meet all of the necessary criteria. With HST rebates, this couldn’t be more important, because a poor application or missing documentation can jeopardize a claim. Worse still, approved rebates can be rescinded in the future.

Notwithstanding all the regulations and definitions prescribed by CRA, “substantial renovation” is interpreted as 90% or more. For rebate eligibility, this means that at minimum, 90% of a pre-existing building must be renovated. Important to note, this interpretation applies to the interior portions of a building. Like anything bureaucratic, HST real estate rebates could get complicated, and a rebate specialist might be valuable to consult.

At Rebate4U, in-house rebate specialists have been assisting property owners for years to obtain HST real estate rebates. With longstanding experience, and with expertise dealing directly with Canada Revenue Agency, Rebate4U helps clients receive the maximum rebate amount possible. In addition to “substantial renovations” and “major additions”, the team can process other types of HST rebates, within the two-year deadline date.

  • those who have purchased a newly built home or condominium
  • those who have built a new home (or completed a major addition)
  • those who have converted a non-residential building into a home

The team at Rebate4U has filed millions of dollars of rebates for all types of clients. The priority is always to provide high quality, professional services in the Greater Toronto Area and throughout the Province of Ontario. Rebate4U offers personal, attentive service, and strives for 100% client satisfaction with every HST application. Contact a Rebate4U specialist toll free at 800-610-4510 (locally at 416-783-6969) or visit the website at www.rebate4u.ca .

Download PDF

All posts
We are sorry...

But the values you entered are invalid