Am I Eligible For The GST/HST Housing Rebate?

New suburban housing property in Southern Ontario

Everything You Need To Know Regarding Eligibility For The GST/HST New Housing Rebate

While many industries in Canada have suffered from shutdowns and delays due to the COVID-19 pandemic, the Canadian housing market has experienced an unprecedented boom. Throughout the last year, there has been a high demand for residential properties with the benefit of historically low mortgage rates, which has resulted in bidding wars and a substantial increase in the average home price.

Rather than purchasing new, many other homeowners have renovated their primary place of residence. This is due to the fact that lockdown measures and work-from-home orders have required people to spend a significant amount of time inside their homes.

If you are a home buyer who has purchased a new build, has purchased a new property for investment purposes, or has substantially renovated your home, you could be eligible for the GST/HST New Housing Rebate. And if you are someone who hasn’t heard of this tax rebate, you are potentially missing out on an opportunity to put your hard-earned money back into your bank account!

Want to know whether you qualify? Here is what you need to know about claiming the rebate.

Tax expert calculating housing rebate on tablet

What Is The New Housing Rebate?

The New Housing Rebate is a refund that allows homeowners to recover some of the amount spent towards their homes. In Ontario, this refund applies to the tax paid on their home. The GST portion refers to the goods and services tax, whereas the HST is the federal part of the harmonized sales tax. It is intended for a person who has built a new home or has substantially renovated their current home. Newly built homes purchased from a builder qualify for the rebate, but in most cases the rebate amount is built into the house price and the rebate is claimed by the builder. The GST/HST Rebate in Ontario is only available for the owner’s principal residence. It does not apply to non-residential property unless that property is converted into an investment property.

How Does An Individual Qualify For The Rebate?

You are eligible to claim the GST/HST New Home rebate if the following conditions are met:
Tax expert handing cheque for GST/HST credit to client

Does The Rebate Apply To A Condominium Unit?

There are a lot of questions and confusion in regards to the New Home Rebate and whether it applies to condos. However, it should be clarified that the HST New Housing Rebate in Ontario is available for a person who has purchased a new condo from the developer within the last two years. The rebate is typically factored into the list price of the units and the rebate, for principal residences only, is claimed by the builder. .

Is The Rebate Only Available For First-Time Home Buyers?

Many people are under the assumption that these rebates are only available for first-time homebuyers. However, this isn’t necessarily true. While many first-time buyers take advantage of the GST and HST tax rebate, it is available to everyone so long as they meet the conditions set out by the Government of Canada.

How Do You Claim The Rebate & How Do You Navigate Through The Requirements of The Canada Revenue Agency?

One of the most confusing aspects of the rebate process is trying to determine eligibility and then how to receive the tax credit. The Government of Canada has also made multiple rebates available, so if a person doesn’t qualify for the New Housing Rebate, they may qualify for another. If you think you might be eligible for this rebate and want to submit an application, it is best to do so with a professional by your side.

Sproule + Associates are able to help you claim the rebate in three easy steps. All you have to do is contact us, we’ll submit all your documents and then you can cash your cheque. It really is that simple! And the best part is, we’ll handle all discussions with the CRA. Contact our tax expert today to get started!

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Interested in finding how much you can get back?

If you've recently undergone substantial renovations, built or hired someone to build an addition, built or hired someone to build a new home, or purchased a new residential rental property, you can receive money back from the government. Use our free calculator to find out how much you qualify for.

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