How Does Ontario’s New Home Rebate Work?

Eligibility for the HST rebate in Ontario

When applying for the Ontario New Home HST Rebate, there are certain eligibility requirements that applicants must satisfy. Anything short could compromise and even disqualify eligibility.

• must be purchasing a newly built home
• must be purchasing a new-built condo
• must be hiring a builder to build a home
• must be substantively renovating a home
• must be building a major home addition
• must be rebuilding a fire-destroyed home

HST Rebate Deadlines and Timelines

HST new housing rebates take between 2 and 6 months to receive once submitted. Applicants must provide the rebate application, supporting documents, and relevant invoicing to CRA. An HST rebate must be filed within 2 years of a real estate closing date. For the more specific renovation rebate, the 2-year period is calculated from the date of construction completion. Importantly, the home or condo must be the main living residence (primary residence) of the claimant. The home address must appear on such personal documents as a driver's license.

With More Than One Property Buyer

There are unique situations where a mortgage lender would require a third party on the property title. This could be as little as 1% ownership. In this unique situation, the third-party “owner” must also satisfy all of the HST rebate provisions. For CRA, the third party must be a “close” relative of the property owner. In short, everyone on the title must be rebate-eligible or no one will be eligible. Failure to comply with these provisions could result in CRA cancelling the rebate.

Claiming an HST rebate in Ontario With the Specialists at Rebate4U

The Ontario New Home HST Rebate has stringent submission guidelines, document demands, and deadlines. Late applications or poorly prepared applications can be disqualified. In worst cases, CRA can actually request a rebate to be returned. For some applicants, the process can be challenging and stressful. At Rebate4U, in-house specialists assist clients to prepare and submit HST rebate applications. We have years of expertise and we regularly deal with Canada Revenue Agency. Best of all, we do everything for our clients from the start of an application to the end – and we always satisfy the two-year CRA deadline. Rebate4U currently serves customers in the Greater Toronto Area and throughout all of Ontario. To learn more about our various services, give us a call or visit us online.