The Ontario New Home HST Rebate is available when purchasing a new condo or home from a builder. This rebate is also available when hiring a builder to build a brand new home.
The provincial government initiated the HST rebate in Ontario in order to help out prospective homebuyers with the high cost of home buying and all the associated financial responsibilities.
Essentially, the rebate reimburses homebuyers for a portion of HST paid, thus lessening the financial load, especially for those buyers who may be entering the market as first-timers.
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.