menu

The History of HST Real Estate Rebates in Canada

Date Posted
26 April 2017
HST stands for Harmonized Sales Tax - it’s essentially a combination of two taxes. The first tax is a 5% Federal Goods and Services Tax, which is commonly referred to as GST. The second tax is an 8% Ontario Provincial Sales T, commonly referred to as PST. In combination, the HST totals 13%.Introduced across Canada by the Canada Revenue Agency (CRA), the HST was imposed on real estate transactions when purchasing a pre-construction condominium or home. Before the HST came into practice, Ontario real estate transactions were obligated to pay only the 5% GST. The idea of an HST real estate rebate is for the federal government to refund a significant amount of HST on various types of real estate purchases (as defined by the program). Applicants must follow certain rules and regulations, and also abide by specific qualification guidelines.There are several different purchasing opportunities for recovering HST on real estate:
  • end-users or investors who buy a pre-construction condominium or house
  • those who have purchased a newly built, not previously lived-in residence
  • those who have built a personal residence (or have dramatically renovated)
Although both end-users and real estate investors could be eligible for an HST rebate, there are two different avenues of approach for each. For end-users who plan to live in a new home or new condominium, they must apply for a rebate through the New Home Rebate Program (NHR).
The History of HST Real Estate Rebates in Canada

The New Home Rebate Program (NHR)

Under this program, eligible applicants must occupy the property as a principal resident, which means living there for most of the time, and at least for the first complete year. In most situations, the property developer claims the NHR, and the buyer receives a “rebate” built into a discounted purchase price. Without living in the premises for at least the first year, purchasers may well be required to pay Canada Revenue Agency back the entire HST rebate amount. Also important with the NHR, is to formally claim the new residence as a “principal” residence. It means changing over address details on all relevant documents (driving license and health card). Under the NHR, purchasers could also receive an HST rebate when an immediate member of the family will live in the new home. This provision only applies to direct relatives, like parents, or grandparents, or husbands/wives). More distant relatives are not eligible here.

Residential Rental Property Rebate

Real estate investors who plan to lease a new home or condo after purchase, must apply for their HST rebate through the Residential Rental Property Rebate. These types of investors, including foreign nationals, are eligible for an HST rebate. They must provide a formal one-year residential lease agreement that proves the newly built premises will be leased to a tenant.  These investors must pay the required HST amount when purchasing, and will be reimbursed after processing. Under the Residential Rental Property Rebate, investors who “flip” ownership of their property prior to one year of ownership will be required to pay the HST amount in full, and without getting a rebate. After the first complete year, the premises can be sold without sacrificing the rebate.

Contact Us

Rebate Calculator

Please enter the total value of your renovation including tax.

Total construction cost
(including taxes)
$
Search Our Blogs

More of our Blogs

30 April 2024

What to Do When You've Been Contacted By the CRA for Your HST Rebate

Being thorough, accurate, and honest in your application is essential for a successful HST rebate claim. To ensure that it is accurate, contact Rebate4U. Our team has successfully secured millions of dollars in rebates for our clients, for over a decade.

View Full Post
15 April 2024

How to Cash in on Your Spring Renovations with the Ontario Rebate Program

Learn more about how you can cash in on your spring renovations with the Ontario rebate program!

View Full Post
26 March 2024

Tips to Ensure Your Renovation is Substantial Enough for the HST Rebate on New Homes

The Harmonized Sales Tax (HST) Rebate on home renovations is a significant financial incentive for homeowners in Ontario, providing a golden opportunity to recoup a portion of the expenses involved in upgrading and enhancing their living spaces. This rebate is offered via Canada Revenue Agency, and it aims to encourage property owners to invest in their homes, not just for personal satisfaction...

View Full Post
13 March 2024

How to Claim the HST Rebate on Rental Properties

The HST rebate on rental properties or the New Residential Rental Property Rebate is an excellent opportunity for new condos and homeowners who are not planning on occupying the property to get some money back that was invested in the purchase of the new home. Choosing to rent a property is an effective secondary passive income. When paired with the HST Rebate in Ontario, a rental property can be...

View Full Post
26 February 2024

How to Find a Tenant Ahead of Your HST Rental Rebate Application

If you’re renting out a new residential property, the HST Rebate in Ontario is a great opportunity to get back some of the money you’ve invested into purchasing the condo. Available via Canada Revenue Agency, the New Residential Rental Rebate Program can mean thousands of dollars back. To qualify for this rebate program in Ontario, you must meet the criteria set out by Canada Revenue...

View Full Post
10 February 2024

3 Stand-Out Benefits of Applying for HST Rebate on Home Renovations

Home renovations are a great way to revitalize your existing property to transform it into your dream home. Working with the best contractors you can make large-scale upgrade plans that rebuild your home from the ground up. With programs like the New Home HST Rebate in Ontario, the cost of these significant upgrades can be mitigated. By working with the experts at Rebate4U you can assess your...

View Full Post
31 January 2024

Why Turn Repairs into Renovations with the Home Renovation HST Rebate

Whether you’ve recently purchased a new home that needs a lot of work or are ready to upgrade your existing home, renovations and remodels can rack up quite the bill. But for homeowners in Ontario, the HST rebate on home renovations is a viable option that can help you get more return from your investment. Read on for more information!

View Full Post
18 January 2024

Which Part of Your Home Renovations Are Subject to HST in Ontario?

Like with the transaction of any good or service in the province, there is a 13% tax (Harmonized Sales Tax) added to every purchase, including the sale properties. When buying a home, this tax can add up to a substantial amount. In Ontario, the HST Rebate program is offered to residential property buyers as a way to offset the cost of new home purchases.

View Full Post
15 December 2023

What to Do When You're Not Ready to Move Into Your New Condo

If you’ve bought a new condo and want more insight into your rebate options, from the HST Rebate on new homes to the New Residential Rental Property Rebate, contact the experts at Rebate4U for more insight and personal guidance.

View Full Post
27 November 2023

So You Built a New Home, Now What?

If you’ve recently finished building your new property in the last two years, you may be eligible for money back with the HST rebate in Ontario. The program allows homeowners to recover a portion of their HST spent on construction.

View Full Post
Homeowners, obtain an HST rebate of up to $30,000 today!
get started

Why Choose Rebate4U?

Experienced Specialists

For over 10 years, the Rebate4U team has the knowledge and expertise to help residential property owners throughout Ontario successfully apply for regional HST Rebate programs.

Free Consultations

Our specialists offer complimentary consultations where we review your eligibility to determine whether you qualify for an Ontario HST Rebate so you can proceed with your application confidently.

Millions Awarded

We are able to expertly navigate rebate opportunities, staying up-to-date on the most recent rebate developments and changes in the HST Rebate program to maximize returns. To date, we’ve successfully acquired millions of dollars for clients in total.

Customer Commitment

The Rebate4U team is dedicated to delivering the highest level of customer service, we are here to answer your questions and help you navigate the intracises of your application easily and efficiently.

Cashing-In on the HST Rebate is as Easy as 1-2-3
Contact REBATE4U

Set up a quick, free consultation with the Rebate4U team to explore your HST Rebate options.

COLLECT DOCUMENTS

Submit your required documents to Rebate4U, and we'll handle your application.

GET YOUR Money BACK

Apply for the rebate and receive thousands in rebates in just weeks with Rebate4U.

FIND OUT IF YOU QUALIFY

We are proud to be working with top Canadian companies

Recent Posts view all posts

What to Do When You've Been Contacted By the CRA for Your HST Rebate

Being thorough, accurate, and honest in your application is essential for a successful HST rebate claim. To ensure that it is accurate, contact Rebate4U. Our team has successfully secured millions of dollars in rebates for our clients, for over a decade.

Read More

How to Cash in on Your Spring Renovations with the Ontario Rebate Program

Learn more about how you can cash in on your spring renovations with the Ontario rebate program!

Read More
We Are Based

Rebate4U
101-3185 Bathurst St
Toronto ON
M6A 2B2

1-800-610-4510
info@rebate4u.ca

Connect With Us
Error...

Please, enter a valid value

We are sorry...

But the values you entered are invalid

Rebate

In celebration of our 3 year anniversary at Rebate4u Inc, we have decided to reduce our fee structure for all new home and renovation rebates including the New housing rental rebate.  

Don't waste your time looking for anyone else to take care of this because we will not be under sold.
Please fill out the form below or call us at 1-800-610-4510

Please, enter a valid value