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.
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:
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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.
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:
In limited circumstances, a recreational unit affixed to land and modified to incorporate the characteristics of a home may qualify as well.
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.
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.
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.
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.
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.
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.
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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Maria and her knowledgeable and hardworking staff provided us with excellent service in our property closing. They are easy to reach, answered all questions we had timely and professionally. I would certainly recommend MBLAW to my friends and family. And I will work with them again if I need Real Estate lawyer's help.
It was such a great pleasure to work with MBLAW and Mariya in particular. I am a non-resident of Canada and Mariya took her time to explain the process of selling the property and tax implications after closing. She referred me to a great accountant who was able to get the certificate in record time. Mariya went above and beyond her call as my lawyer to help me. The buyer has some post-closing issues but Mariya was able to handle the situation with minimal cost to me. Very dedicated and professional. Would recommend 100%! Thank you, Mariya! You and your company are the best!
We have closed our real estate transaction with Mariya. Mariya is very professional and competent legal practitioner who is always ready to answer questions and help. Her final report was impeccable! I highly recommend her firm and real estate services to anyone!
I would highly recommend this firm to anyone seeking a real estate lawyer. Mariya is very knowledgeable, personable and is easy to reach. She goes above and beyond to answer all client questions and inquiries and ensures that clients' transactions go through smoothly and without a hitch. Her staff is also helpful, friendly and very responsive. Overall a great firm!
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