What Is the HST New Housing Rebate?
The HST new housing rebate is an initiative by the government that allows people to reclaim some or all of the HST on a new or substantially improved residence. The rebate is available for both the federal and provincial parts of the HST, but this article is written about the HST rebate offered by Ontario specifically. The rebate can be worth as much as $30,000 or more, depending on your build cost and suitability.
Eligible Home Building Situations
You may be eligible for the HST rebate in Ontario if you:
- Build a new home on land that you own
- Significantly renovate a current residence (90% or greater)
- Convert a non-residential building into a residence
- Build a mobile or modular home
In every one of these situations, the house must be intended to be your primary residence. Rental or investment properties generally do not qualify under the same rebate program.
Key Eligibility Factors
To be eligible for the HST new housing rebate, you must:
- Be the one who paid for the materials and construction
- Occupying the home as your primary residence
- Complete construction (or significant renovation) before applying
- Have your claim made within two years of the build completion
If you're not sure if your unique situation meets eligibility, Rebate4U will help determine your eligibility and guide you through the process.
What Can You Claim?
Eligible expenses are HST paid on:
- Materials utilized for construction
- Work of contract labour
- Architectural and design work
- Some land costs (if applicable)
It is essential to maintain all evidence of payment of HST, and all invoices, since the CRA requires detailed records of all HST rebate Ontario claims.
Application Method
To claim the HST new housing rebate, you’ll need to complete and submit forms such as GST191 and RC7191-ON. Applications can be submitted online or by mail. Missing documents or errors can delay your rebate, which is why working with a team like Rebate4U is so valuable.
Avoid These Common Mistakes
Many homeowners miss out on HST rebates in Ontario due to avoidable errors such as:
- Submitting the application too late
- Failure to keep proper receipts
- Requesting a clearance property that is not residential
With professional guidance from Rebate4U, you can have it completed correctly and in compliance.
Maximize Your Savings with Expert Guidance
The HST new housing rebate is a valuable program that can help you recover thousands, but it can be complex. Whether you are building your dream home yourself or organizing a large-scale renovation, don't leave money on the table. Partner with Rebate4U and ensure that you receive all the money you are entitled to. Call now to arrange a free consultation and learn how much you might recover!
