The Ontario New Home HST Rebate is made available to property buyers purchasing a newly built home (or a newly built condominium) directly from a builder. This specific HST rebate is also made available to those who are hiring a building contractor to build a new home.
The government introduced this particular HST Rebate in Ontario to moderate the high cost associated with home buying (and the additional financial demands). Basically, the rebate amount reimburses the property buyer for a portion of the HST already paid. It, therefore, lessens the financial burden – especially for buyers who are entering the home market first time.
Eligibility for the Ontario New Home HST Rebate
To apply for the new home HST rebate, applicants must satisfy specific requirements. Submitted applications that do not fully meet the basic requirements could be disqualified for eligibility.
- a newly built home must be purchased
- a new-built condo must be purchased
- a builder must be hired to build a home
- a home must be substantially renovated
- a sizeable home addition must be built
- a fire-destroyed home must be re-built
Eligibility for an Owner Built Home
The new home rebate can be claimed when a home is owner-built OR when someone is engaged to build a new home OR when a home is substantially renovated OR when someone is engaged to substantially renovate a home OR if 90% of an existing home is substantially renovated. An addition like a sun porch, family room, sunroom, or bedroom is not considered a “major addition.”
When Purchasing From a Builder
The Ontario New Home HST Rebate can be claimed when a home is purchased directly from a builder. This includes a new home OR a substantially renovated home. It also includes either a new or a substantially renovated mobile home. Finally, the rebate applies when purchasing a share of a CO-OP (co-operative housing corporation) where the CO-OP has already paid tax.
With More Than One Homebuyer
In some situations, when a mortgage lender requires a 3rd party on the title, the 3rd party “owner” will also have to satisfy all rebate pre-requisites to claim. CRA defines a 3rd party as a “close” relative to the property owner. Simply put, in addition to the property owner, everyone on the title must be eligible for the rebate – or no one is eligible (CRA has the right to cancel a rebate).
Rebate Timelines and Deadlines
A new housing rebate typically takes from 2 – 6 months to receive. Applicants must submit the rebate application, all supporting documents, and all relevant invoicing. HST rebates must be claimed within two years of a “closing date.” Very importantly, the new home or condo unit must be the primary residence of a claimant. Personal documents must reflect this fact.
Claiming an HST Rebate in Ontario With Rebate4U
At Rebate4U, our tax professionals fully prepare and submit your rebate application. We do it all from beginning to end – and everything is submitted according to CRA deadlines.
Rebate4U serves customers in the GTA and throughout the province. Learn more on our website at www.rebate4u.ca. Or if you want to speak to an expert at Rebate4U, please call 1-800-610-4510.