How to Know If You’re Eligible for the Ontario HST Rebate

How to Know If You’re Eligible for the Ontario HST Rebate

Many new homebuyers aren’t fully aware of the Ontario New Home HST Rebate. In general, this rebate allows homebuyers to apply for a refund on a portion of the HST paid on their new home.

Homebuyers must have purchased their home from a builder or must have custom-built their own home. The newly purchased property must be occupied as the “principal place of residence.”

There are numerous conditions that determine whether a new homebuyer is qualified for the Ontario New Home HST rebate, most specifically the price of the new home. In addition to these more specific eligibility requirements, the new house or condo must be located in the Province of Ontario.

The Ontario New Home HST Rebate

tax rebate form This rebate is available only to individuals who meet all of the pre-requisite. It’s not open to individuals who co‑own the property with a corporation or within a partnership. However, there are some of the specific eligibility requirements that individuals must satisfy for Canada Revenue Agency.

  •  you bought a new home (or condo), or you substantially renovated a house
  •  you converted a non-residential property into a livable residential house
  •  the newly built house will be the primary residence of the rebate applicant

HST Rebate on Home Renovations

The HST rebate on home renovations is one element of the new home rebate. Here, a property owner must undertake either a “significant” renovation, a major addition, or a full conversion of a non-residential property to a residential property.

Substantial Renovation

A “substantial” renovation essentially creates a “new” house. The home’s interior must essentially be totally renovated. Nearly the entire interior space must be cleared and renovated to qualify.

Major Addition

An addition to a home is eligible for a rebate if it is large enough. It must constitute a “new home.” For example, adding a complete second floor to an existing house would qualify as a “new home.”

Property Conversion

The conversion of a non-residential property into a residential property qualifies for a rebate. The finished converted property must be the primary living residence of the owner (or close relative).

Ineligibility Criteria for Rebate

As expected, Canada Revenue Agency has numerous rules for rebate eligibility. In some cases, however, there are rules that make property owners ineligible to apply for the new home rebate.

  • when a property buyer purchases a home to “flip it”
  • when a property buyer purchases a home to rent it
  • when a buyer does not first occupy the new home
  • if the property “title” is not in the name of the buyer

Count on the Rebate Professionals at Rebate4U

If you’re not completely sure about rebate eligibility, it can be of benefit to consult a professional rebate specialist. At Rebate4U, our in-house professionals manage your rebate application from start to finish. We streamline the application process for our clients and simplify the process for both first-time property buyers and real estate veterans.

To find out more, call 1-800-610-4510 or send us a message online.

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