You May Be Eligible For An HST Rebate Of Up To $30,000.

If you have purchased a new home (including a condominium) or substantially renovated your own home, you may be eligible to receive up to a $30,000 GST/HST rebate on the total amount paid.

As a full service accounting firm in Greater Toronto Area, we offer a wide range of assurance and tax services that can assist clients with maximizing a variety of potential tax saving opportunities, including assistance with the GST/HST new housing rebate.


To qualify for this rebate, you must be a person who bought a new or substantially renovated house (including a new condominium unit) from a builder, and you meet some conditions.

 

Do I qualify for the GST/HST New Housing Rebate?

The GST/HST New Housing Rebate essentially allows the home buyers to re-collect a portion of the amount paid.


The HST typically applies to the selling prices of homes that were newly constructed, homes with interiors renovated at a portion of 90% or more, as well as relocated houses.

Federal GST/HST New Housing Rebate. In order for a home buyer to be eligible for the Federal Rebate option of the GST/HST New Housing Rebate, the total purchase price must be less than $450,000.

The Federal Rebate amount is approximately 1.8% of the purchase price, if the price is less than or equal to $350,000. However, if the purchase price is higher than this amount, the Federal Rebate portion decreases slowly, up to the maximum qualified amount of $450,000. Provincial GST/HST New Housing Rebate. In Ontario, the maximum amount that an

individual could receive as the Provincial Rebate option of the GST/HSTNew Housing Rebate, is the amount of $24,000, which is approximately 6% of $400,000. Accountants of Toronto state that home buyers essentially pay 2% on the first $400,000 of the purchasing price, and then pay 8% thereafter. Although the Provincial Rebate amount has been capped at the first $400,000 of the purchasing price, unlike the Federal Rebate option of the GST/HST New Housing Rebate, a new home buyer could apply for the Provincial Rebate option at purchase prices greater than $450,000.

Criteria and Conditions:


It is critical to note that the primary factor, which is considered by the Canada Revenue Agency for the purposes of the qualification for the GST/HST New Housing Rebate, is the intent at the time of purchase. If the purchase was intended as a primary place of residence, the purchaser will qualify for the rebate. On the other hand, Toronto Accountants state, that if the purchase was made as an investment for the purpose of rental property, the purchaser would typically not qualify for a rebate. However, as a builder, one may still qualify to recover a portion of the taxes paid.

In order for a new-home buyer to qualify for the GST/HST New Housing Rebate, the Accountants of Toronto state that all of the following conditions must be met:
The home buyer has purchased a new or a substantially renovated house/condo from a builder, and has paid all of the GST/HST taxes due.
The builder sells the purchaser the house, as well as the related land upon which the house is located under the same written agreement.
The home buyer has purchased a new or a substantially renovated house/condo from a builder, and has paid all of the GST/HST taxes due.
Upon signing the purchase agreement, the purchase is made with the intention of making it the buyer’s or the buyer’s spouse’s/common-law’s primary place of residence.
The purchase price of the home, the land, plus the purchase price of the taxable assignment of the original sale agreement before tax totals to less than $450,000, in order to qualify for the Federal Rebate option.
In the case of the purchase of a renovated home, the ownership of the house is transferred to the purchaser after substantial renovation has been completed.
The house must have been unoccupied beforehand, or in the case of a renovated house, the house must have been unoccupied once a substantial amount of renovation had been completed.
One of the following must apply to the purchaser:
- The purchaser, or a relation of the purchaser is the first occupant of the house
- Made an exempt sale of the house before its occupation by anyone

With our experience in providing real estate and investment advice, we assist our clients with all forms of rebates, including the GST/HST New Housing Rebate. We look forward to you contacting us with further questions directly by email info@kenaccounting.com or by calling our office 905-789-8484