The Ontario New Home HST Rebate or the HST Rebate on Home Renovations is tax rebate available through Canada Revenue Agency where eligible property owners who have built a new home or have undergone a substantial renovation to their home can recover a portion of their HST spend. There are many requirements that determine whether a property qualifies for this rebate, one of the most definitive being that a new home or condo must be the primary residence of the claimant or the claimant’s direct blood relatives. If the property is not a primary residence then it will not qualify for the Ontario New Home HST Rebate.
Who Qualifies for Primary Residence?
The HST Rebate on Home Renovations has to be a primary residence for either the claimant or one of their relatives. Only immediate family members to the claimant can occupy the property as their primary residence to be considered eligible according to the Canada Revenue Agency. These immediate relatives include someone closely related by blood, marriage, common-law, or adoption. Any other occupant, such as a tenant would disqualify the property for the HST rebate.
Properties Ineligible for the Ontario New Home HST Rebate
Applying for the Ontario HST Rebates like the HST Rebate on Home Renovations is contingent on building a new home or renovating your property. If you’re purchasing a newly built home or condo directly from a builder, you will have already received the rebate from the builder and won’t be able to apply for it separately. The Ontario New Home HST Rebate focuses on homeowners looking to rebuild their existing home from scratch by self-contracting. The HST Rebate on Home Renovations is similar in the sense that property owners must be self-contracting a remodel or renovation that accounts for about 90% of the property to be eligible.
Vacation Homes & Cottages
The Ontario New Home HST Rebate and the HST Rebate on Home Renovation only applies to properties that are a principal residence. As a result recreational or secondary properties that undergo renovation or rebuilds would not qualify for the rebate since they are not inhabited as a primary place of residence for the claimant or their immediate family.
Property owners can only designate one property as a “principal residence”. Clearly, a second property wouldn’t qualify for an HST rebate. Finally, if the “primary residence” of a claimant is outside of Canada, then a home in Canada would be considered a secondary place of residence and would therefore not qualify for the HST new home rebate.
Working with the Team at Rebate4U
If you have questions about your eligibility, contact the team at Rebate4U. Our specialists have years of experience with HST Rebates in Ontario, if your property does not fit into this category, we will advise the next best options and help streamline your application to maximize your return and reduce your stress.
At Rebate4U, our in-house experts provide end-to-end service with the various HST rebate programs available through Canada Revenue Agency. Our team has many years of experience dealing directly with CRA as well as related expertise with each of the different types of rebates.
Want to learn more about your rebate options in Ontario?