The Ontario New Home HST Rebate makes it possible for new homebuyers to recover a portion of their HST tax after purchasing a new property. The property must be either a newly built home OR an existing home that has undergone “substantial renovations” (this qualifies under the HST Rebate on home renovations).
These Ontario rebates are available ONLY to homebuyers who occupy the new home as their principal residence. Depending on the purchase circumstances and the different types of eligible homes, the Ontario New Home HST Rebate could offer a new homebuyer a substantial rebate amount of up to $30,000.00.
To be fully eligible for the Ontario New Home HST Rebate or the HST Rebate on home renovations, Canada Revenue Agency stipulates several categories for claiming the rebate.
- you must have purchased a newly built home or condo in the previous two years
- you must have hired a private builder or contractor to build a home on owned land
- you must have purchased shares in a CO-OP housing property (primary residence)
The Canada Revenue Agency Definition of a “Home”
For Canada Revenue Agency, different types of homes are eligible for the HST rebate as long as all eligibility criteria are satisfied. Supporting documentation must be supplied when applying for the rebate, and everything must be submitted within two years following the closing date of the real estate transaction.
The CRA recognizes several different types of homes.
- detached or semi-detached house
- townhouse unit or duplex building
- co-operative housing unit
- mobile home or floating home
- modular home (pre-fabricated)
To apply successfully for the Ontario New Home HST Rebate, claimants to have purchased a home that is “newly built” or “substantially renovated,” it’s essential for that property to be the primary residence of the individual claimant or someone who is an immediate family relation.
A primary residence is the home that the claimant owns personally (or jointly) with the intention of living there on a permanent basis. This could be a residential home, a condominium, a mobile home, or even a floating home (houseboat).
Other Important Eligibility Requirements for the Ontario New Home HST Tax Rebate
A claim for the new home HST rebate must be submitted to CRA by the deadline date – within two years of the real estate purchase or within two years of completing a renovation. Late filing could jeopardize a claim and even nullify a claim.
In Ontario, the HST rebate can be claimed on costs such as building construction, land purchase expenses, and interest charges. Rebate paperwork must be completed fully and accurately, and supporting documents must satisfy CRA requisites.
Choosing to Work with a Tax Rebate Professional
Because rebate applications can sometimes be complicated and stressful with CRA, some new home buyers choose to work with a tax rebate specialist. At Rebate4U, our in-house professionals ensure that every rebate application is handled from start to finish and delivered by the deadline date. Rebate4U provides clients throughout Ontario with professional service, making sure that every client is 100% satisfied.