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What is the Ontario HST New Housing Rebate?

How much is the HST Rebate in Ontario?

Ontario’s New Home HST Rebate is available for principal residences and a variety of other conditions. All depending on the circumstances, the New Home HST Rebate could quite easily add up to $30,000.

For the Ontario HST new housing rebate, you must be eligible under provisions defined by the Government of Canada. There are a number of categories for reclaiming some of the HST paid.

The HST new housing rebate applies to:

 

Additional rebate options (up to $16,080) are available if work has been done in the past 2 years.

middle aged couple learning what the Ontario New Housing Rebate is

Determining which HST new housing rebate can be claimed

The Ontario HST new housing rebate allows individuals to recover part of the HST paid (the federal harmonized sales tax) on a new or substantially renovated home. That home must be used for the individualor for their close relation as a primary residence.

In certain situations, there is also a transitional new housing rebate that may be available in addition to the HST new housing rebate (even if the home is not a primary residence). With these types of situations it may be best to work with a professional rebate firm.

Properly applying for your Ontario HST new housing rebate

Like other rebate and incentive programs, certain paperwork must be supplied, and certain documents must be kept on record. Applicants must send invoice copies with their application worksheet, showing that the vendor did not charge HST. Applicants may well be contacted and requested to provide a proof of occupancy.

Applicants should keep all completed forms on file, as well as invoices and other pertinent documents (for six years). Only the original invoices in the name of the applicant (or co-owners) are suitable. Account statements, work estimates, or project quotes are not suitable. Here again, it may be of value to work with a tax expert.

When to Fill Out an Application For the HST Rebate

If you’re constructing a home you can go ahead and apply for it once a substantial amount of the construction is completed and the property is occupied. If it’s a brand new home or condo, you can apply when the property sale closes.

If you’re renovating a property we recommended to apply for the HST New Housing rebate once a substantial amount of the renovation work has been finished, as the process can take many months.

For those who bought a condo, townhouse, co-op apartment, multiplex, or other investment property (that will be rented out), these individuals can apply for an HST rental rebate when the property is leased.

What is considered a primary place of residence?

For property owners, it’s important to understand “primary place of residence”. A primary residence is a home that you personally or jointly own and intend to live in on a permanent basis.
Your primary place of residence can be any of the following types of housing units: a condo, a house, a cottage, an apartment in a duplex, an apartment in an apartment building, a mobile home, a trailer or houseboat. It can be a housing unit, a leasehold interest in a housing unit, or a share of the capital stock of a co-operative housing corporation you acquire only to get the right to inhabit a housing unit owned by that corporation.

When you apply for the new home HST rebate in Ontario, you can receive the money spent on contractors, materials, and other professional fees for a maximum return of $30,000. There are instances where your property may not qualify for the new home HST Rebate and other scenarios where your product is fit for a different HST Rebate in Ontario.

A property has to qualify to be a principal residence and needs to meet these conditions.

**If you build or buy a new house in Canada, but your primary place of residence remains outside Canada, then your house in Canada would be a would not qualify for the new housing rebate as it would be your secondary place of residence.

For HST Rebates, the property must be the primary residence of the HST applicant or an “immediate” member of the family. Immediate family is a relation by marriage, common-law, adoption, or blood.

Why does Ontario provide an HST rebate on new homes?

hst new housing rebate ontario with money fan of 20 dollar bills

Ontario’s HST housing rebates allow individuals to recover portions of tax that’s paid on a new home purchase (or a substantially renovated house). As mentioned, the home must be a primary residence.

The HST rebate (Harmonized Sales Tax) for new homes helps homeowners with the ever-increasing cost of purchasing a new home. Rebates reimburse buyers for a portion of taxes that are paid out.

With strict rules governing the application process, HST housing rebates can sometimes get complex. As such, it’s recommended to work with an HST rebate professional for a smooth application process.

The rebate process takes between 2 and 6 months to be completed. Applications and all of the supporting documentation are forwarded to Canada Revenue Agency.

HST rebates must be filed within a 2-year period, after a purchase closing date. Importantly, in any application, the premises in question must be used as a primary residence. Primary means the main living residence. This address must appear formally on personal records or public records, and will be required as proof of residency when an application is submitted.

Does the HST new housing rebate include cottages?

Ontario’s HST new housing rebates only apply to a principal residence. 

Vacation Homes and HST Rebates 

If you’re building a secondary place of residence, a summer home, or a vacation cottage, the HST rebate for new homes will most likely not apply to you. To be considered for this rebate, a property undergoing construction or renovation must be a principal residence for the owner or an immediate relative (adoption and marriage included) for the first 12 months after closing. 

Investment Properties

The new home HST rebate is meant for primary residences and should be occupied for 12 months by a direct blood relative. If you’re looking to renovate and rent condos, then the New Residential Rental Property rebate will be better suited for you. To find the right Ontario HST Rebate for your property, talk to the Rebate4U team directly. 

For property owners who are purchasing, selling, or changing property use, it would be wise to seek professional advice from an HST rebate expert. It’s essential to handle any paperwork professionally.

How to Apply for the HST Rebate 

1. Assess Your Eligibility 

Assess the size of your rebate. To apply for the new home HST rebate in Ontario, your remodel must account for almost the entirety of your home. Your property may also be eligible for the Ontario HST rebate if you are constructing it from the ground up on a property you own. If you need assistance determining if your renovation will qualify you for the rebate, the team at Rebate4U can help.

 

 

2. Collect Your Invoices & Documents

If you have paid the HST, collect any invoices to serve as proof. If you’re undergoing renovations, you’ll need to provide floor plans, as well as ownership documents and insurance policies.

3. Set a Meeting

If you’re within 2 years of completing construction, reach out to a specialist at Rebate4U. We will get started on the application to ensure that the process goes smoothly. When you meet with the HST Rebate Ontario team at Rebate4U, we will assess your eligibility, fix any application mistakes or missteps, and ensure that everything needed is provided to ensure you get the maximum rebate for which you qualify. 

Why Work With Rebate4U

The team at Rebate4U has helped attain over $20 million in rebates for clients. We help mitigate the complicated application process of CRA rebates avoiding mistakes using our expertise and experience. Finding out if you are eligible is free at Rebate4U. You only have to pay if we successfully get you the rebate. 

Contact us today to get started!

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