The Ontario New Home HST Rebate allows eligible home purchasers to recover some of their costs when building a brand new home OR when doing substantial renovations on an existing home (known as the HST Rebate on home renovations).
These rebates are only available to home purchasers who plan to occupy the new home as a principal residence. And depending on the purchase circumstances, the Ontario New Home HST Rebate can typically generate a rebate of up to $30,000.
To be eligible for the rebate through Canada Revenue Agency, you must fall into the right category in order to reclaim a portion of the HST that was paid on the newly constructed or remodelled home.
- built or hired a private contractor to build a new home on land that you own in the past two years
- remodelled or renovated at least 90% of your home
Completing the Application Process
If you’re building a brand-new home, you can apply for the HST Rebate when most of the construction has been completed, and the home is occupied. If the home or condo has been purchased as new, you can apply for the rebate when the purchase/sale closes.
If you’re doing a “substantial” renovation on an existing home, you could be eligible for the HST Rebate on home renovations. Because of the processing time required, it’s recommended to apply for the rebate when most of the renovation work has already been done.
A Step-by-Step Application Process
In general, the HST new home rebate is designed to help new home purchasers with the high costs of purchasing a new home. The rebate recovers a portion of HST tax that was paid out.
Step 1:To be eligible, you must build a new home by either self-contracting or hiring a builder. When renovating a home, at least 90% of the house must be cleared and completely renovated.
Step 2: Application paperwork and all supporting documents must be submitted by a prescribed deadline date. Cost outlays may include land purchase costs, building construction, and interest charges.
Step 3: A rebate application should be submitted immediately after the closing date of a home sale or after completion of a renovation. All HST rebate applications must be filed within two years.
Step 4: Many home purchasers don’t wholly understand the HST rebate process. As such, it can be very valuable to work with tax rebate professionals like Rebate4U, who manage the entire process.
Step 5: Rebate4U helps clients to get approved for the maximum rebate possible. We have worked with Canada Revenue Agency on countless HST rebate applications, satisfying all of our clients.
At Rebate4U, in-house tax rebate experts provide clients in Toronto and throughout Ontario with the most professional service. We manage the entire application process for newly built homes and “substantial” renovations. And with our personalized service, we make sure every client is 100% satisfied. With Rebate4U, clients are assured of an application process from end to end.