HST/GST Housing Rebate

While the HST housing rebate in Ontario and the GST housing rebate in Ontario relating to the purchase of a new property can get tricky, there is sufficient relief out there for both individuals seeking a new home and/or investors looking for a quick gain. However, without proper planning, one can also get stuck with having to pay HST twice and not get any form of relief to shelter the additional taxes levied.

Who qualifies for HST new housing rebate?

Individuals who recently purchased a new or renovated house and meet the following criteria: the purchased home is located in Ontario as is for the use of themselves or their spouse/common law partner. In addition, the purchase price must be less than $450,000 in order to qualify for the federal rebate.

Maximum Rebate

The maximum Ontario new housing rebate amount that is available is $24,000, which is equal to 6% of $400,000. In essence, home buyers are paying 2% of the provincial tax in Ontario on the first$400,000 of the purchase price and 8% thereafter. The rebate amount has been capped to apply to the first $400,000. Unlike the Federal rebate however, one can still apply for the Provincial rebate on homes valued above $450,000.

Do I qualify for the rebate?

The HST housing rebate in Ontario and the GST housing rebate in Ontario is only available to individuals who meet all of the conditions for claiming the rebate. However, it is not available to individuals who co‑own the housing with corporations or other partnerships because the rebate is not made available to those entities.

GST/HST New Housing Rebate Eligibility

As an individual, you are eligible to claim the GST/HST new housing rebate if you meet all of the following conditions:

• - You bought a new or substantially renovated house (this includes a condominium unit, a renovated house that has also had a major addition or a non-residential property that was converted into a house) from a builder, and you paid all of the GST/HST due on your purchase;
• - The builder sells you the house and the related land on which the house is located under the same written agreement;
• - When you sign the purchase and sale agreement, the house is intended to be the primary place of residence for you or your     relation;
• - The purchase price for the house (including the land, where applicable), plus the purchase price for a taxable assignment to you of the original purchase and sale agreement (if applicable), before tax, is less than $450,000;
• - Ownership of the house is transferred to you after the construction or renovation is substantially completed;
• -  No one occupied the house before possession of the house is given to you and after the construction or renovation is substantially     completed; and
• -  One of the following applies: you, or a relation of yours, are the first occupant of the house; or you made an exempt sale of the house before it is occupied by anyone.