Who would be entitled to an HST property rebate?
There are many types of properties eligible for rebate - everything from pre-construction condos, to newly built homes, to investment properties.
- Occupants/investors who are buying a pre-construction condo/house
- Purchasers of a newly built residence which has never been lived in
- Those individuals who have built a new home for their personal use
- Homeowners who have significantly renovated an existing residence
What differs between an investor and an end-user?
There are essentially two different types of HST rebates – one for those buyers who plan to reside in the new residence – and one for investors who plan to lease or rent. Getting the two confused could risk losing the rebate. Here again, dealing with an expert will avert any confusion, and any potential for mistakes. Regardless of the property type, the HST rebate will be rescinded if the property is sold during the first 12 months after purchasing. Also important to know are the numerous rules that govern co-signers, family members, co-owners, and even foreign investors.
Does a pre-construction price include any rebates?
Depending on circumstances, most new condominium prices include the HST rebate. But surprise surprise – this is not always the case. There are certain situations where a builder does not factor the HST rebate
into their price. Reading the fine print may help, and consulting the realtor may clear up unanswered questions, but having a rebate specialist on hand may be the most effective approach. There's also a time limit for rebates – and by failing to apply for an HST rebate within 2 years of closing the deal, eligibility may have expired, and the rebate may well be denied.
How are the HST homeowner rebates calculated?
For homes under $350,000, the maximum HST rebate is $30,000. Homes between $350,000 and $450,000 are calculated on a “sliding scale”. Any home above $450,000 has a maximum rebate of $24,000. Keeping in mind that anything HST related is directly connected with Canadian Revenue Agency, many homeowners will find the rebate process far less stressful by dealing with a rebate specialist
. Indeed, hiring a rebate professional could make for a big difference in outcomes. They know what they’re doing, they don't make mistakes, and they know how to deal with the CRA.
When it comes to HST rebates, a reputable firm generally has skilled tax experts on hand. They will manage the rebate process from initial application to the final refund cheque. Best of all, clients are kept abreast of the progress, and advised when the rebate cheque has been received.