New Home HST Rebate Ontario

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    We Can Help You Get HST Rebate On New Home

    New Home HST Rebate in Ontario

    Purchase price of a re-sale property in Ontario includes HST, but,  a purchase of a residential property from a builder may have additional HST implications. If you are purchasing a new residential property from a builder and you or your immediate family member intend to occupy it as your primary residence, you may qualify for an HST rebate. Typically, the New Home Rebate is assigned to the builder by the purchaser of the new home. Subsequently, the builder credits the purchaser with the amount of the rebate, if available, on closing. Thus eliminating additional HST at closing.

    Buyers of investment residential properties and second homes will not qualify for the rebates if the new home is not intended to be the primary place of residence of the buyer or of a relation. If you are buying the property for investment purposes, the builder will charge an addition HST that could exceed $24,000.00. This amount is in addition to your closing costs and cannot be included in your mortgage.

    Ontario New Residential Rental Property Rebate (NRRPR)

    If you are purchasing a residential property with an intention of renting it out as a long term investment, you  may be eligible to claim the New Residential Rental Property rebate for Provincial and some of the Federal part of the HST. Most notably, the property must be rented out for more than one year, the rebate will not be credited to the purchase, the purchaser will have to pay it on closing and claim it from Canada Revenue directly. The process how to obtain the rebate for the buyer is explained to the buyer at closing.  The buyer will be required to deliver the following documents to the vendor at closing:

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    HST Housing Rebate Lawyer in Ontario

    The detailed procedure for the buyer to obtain this benefit is set out in most new home agreements. It must be explained to the buyer at closing because the buyer will be required to deliver the following documents to the vendor at closing:

    • the CRA GST/HST new housing rebate application;
    • an assignment of the new housing rebate to the builder;
    • a sworn statement that the new home will be the buyer’s or a relation’s primary residence;
      and
    • the buyer’s promise to indemnify the vendor for the rebate amounts if the rebate application
      is rejected by the CRA.

    For FREE CONSULTATION contact MB Law today at +1-416-5139418. Your real estate lawyer serving North York, Ontario.

    WHY CHOOSE US ?

    The New Home HST Rebate in Ontario application must be filed within two years of a new home closing date or the completion of the renovation. NRRP rebates and new home HST rebates are typically received from the Canada Revenue Agency (CRA) within two months. The CRA may delay or deny the application if the requested documents are not submitted with your application, the application form is not properly completed, or the rebate calculation is incorrect. With over 9 years of experience, our team can assist you in understanding whether you are eligible for a refund. If you have already completed the purchase, we can still assist you in filling out the necessary forms.

    What Qualifies As A Home For the New Housing Rebate?

    The New Home HST rebate in Ontario is only applicable to certain types of housing. Primarily a newly built home. For the purposes of clarifying who qualifies for the new housing rebate and who does not, a house is defined as any of the following:

    • Detached or semi-detached single unit home.
    • A duplex.
    • A condominium unit.
    • A townhouse.
    • A unit in a co-operative housing corporation.
    • A mobile home, including a modular home.
    • A floating home.

    In limited circumstances, a recreational unit affixed to land and modified to incorporate the characteristics of a home may qualify as well.

    Who Are the Rebates For New Housing Available To?

    The New Home Rebate in Ontario is strictly available to individuals who have recently purchased a home from a builder and who are using it as their primary place of residence. These individuals would have paid GST/HST on this new or substantially renovated home. A portion of this is recoverable, assuming the individual meets all other conditions.

    Does A Home Built By the Owner Qualify for the New Home Rebate?

    In some cases, a home built by the owner may qualify for the new housing HST rebate. This assumes your home was built on land you already own or has undergone a substantial renovation. To be considered a ‘substantial renovation’, this means at least 90% of the interior removed or replaced. You may also qualify if you have built a major addition to your home, i.e. a second story, or if you have converted a non-residential property into your house through renovations.

    I Bought A House From A Builder. Do I Qualify For the New Home Rebate?

    You may qualify for the HST rebate if you have purchased a new home from a builder. The home, however, must be either new or having been substantially renovated.

    How the New Home Rebate Works in Ontario?

    In Ontario, the new home rebate applies to the HST paid in buying, building, or substantially renovating a house. You may be entitled to claim a portion of the provincial part of the HST that you paid. If it is an owner-built house or purchased from a builder, what you can claim as your rebate is capped at a maximum of $24,000.

    What Other New Housing Rebates Exist?

    The New Home HST rebate targets housing used as a primary place of residence by the owner. Unfortunately, if you are renting out your property, you will not qualify for this rebate. However, you may qualify for the GST/HST New Residential Rental Property Rebate which is somewhat similar.

    What Other Conditions Must Be Fulfilled to Qualify for Owner-Built Houses?

    In Ontario, for an owner-built house, you must have built it yourself or engaged someone to build it on your behalf. You must be the first person to occupy the house since the construction or substantial renovation. You also must have paid the HST on the purchase of the land on which the house is situated. If you paid HST on the purchase of the land, you may qualify for a maximum of $24,000 in rebate.

    What Other Conditions Must Be Fulfilled to Qualify for Houses Purchased From A Builder?

    Much like if it was an owner-built house, you may qualify for the new housing rebate for houses purchased from a builder if you paid GST/HST on the property and fulfilled the other conditions mentioned. The maximum Ontario new housing rebate amount for a house purchased from a builder is $24,000.

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