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How Much Can You Actually Get With a GST HST New Housing Rebate?

How Much Can You Actually Get With a GST HST New Housing Rebate?

hst gst new housing rebateIn Ontario, the GST HST New Housing Rebate is claimable for either principal residences or investment properties. Depending on the property (and the specific circumstances) the HST New Housing Rebate could total as much as $30,000. To be eligible, claimants must qualify under either of these conditions:

  • Having purchased a newly built home in the last two years
  • Having purchased a new condo or pre-construction condo

There are also additional rebate options available (up to about $16,000) when substantial renovation work has been done during the past two years. These options are well defined for potential claimants:

  • Substantially renovating a residential home or condominium
  • Construction of a substantial addition to a residential house
  • Converting a non-residential property into a residential home

Applying for the HST New Housing Rebate

For those building a brand new home, the GST HST New Housing Rebate can be claimed as soon as the construction has been completed and the home occupied. If the real estate property is an already built home or condominium, the rebate can be claimed when the sale closes.

For those renovating a residential property, the HST New Housing Rebate can be claimed when all the work has been completed and the home occupied. In this scenario, it’s preferable to wait until 100% of the renovation has been completed (it’s a more complete application).

Definition of “primary place of residence”

When applying for the GST HST New Housing Rebate it’s important to understand the term “primary residence.” This term refers to a property that is permanently occupied by the property owner. There is also eligibility for a residential property under joint ownership.

For individuals who own more than one property, there can only be ONE “primary residence.” Indeed, a rebate applicant can also be an “immediate family member” – someone related by marriage, blood, common-law, or adoption (anything short may compromise a claim).

Why Ontario provides GST HST rebates

Ontario’s GST HST housing rebates allow homeowners to recover some of the tax paid on a new home purchase (or substantially renovated home). These rebates are intended to help homeowners with the very high cost of buying a new home these days.

In general, the rebates have strict rules and regulations as prescribed by Canada Revenue Agency. This means that the application process can sometimes get complicated – which is why it can be a good idea to work with an expert tax rebate professional.

Rebate4U helps homeowners with the GST HST New Housing Rebate

Rebate4U is a professional tax rebate service that helps homeowners receive the highest possible rebate amount from the Canada Revenue Agency. With Rebate4U, applicants are assured of a streamlined application, with paperwork that’s properly prepared, and everything submitted before the deadline.

During COVID-19, the team at Rebate4U continues to serve customers across Ontario. While the staff works remotely, the same high standard of service is still in force. Find out more by calling one of the tax specialists at 1-800-610-4510 or visiting the website at www.rebate4u.ca

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