How the April 2021 Budget Impacted GST/HST New Housing Rebates

Professional reviewing budget for housing rebate

Relaxation Of GST/HST New Housing Rebate Conditions

Under the existing rebate provisions in the GST/HST legislation and regulations, a GST/HST New Housing Rebate was restricted if there were multiple buyers, not all of whom were related, and not all of the buyers (or their relations) were acquiring the home for use as their (or a relation’s) primary place of residence. There have been a number of Tax Court cases that upheld denying the GST/HST New Housing Rebate on this basis, such as in situations where an unrelated party (perhaps a friend or a non-qualifying relation) was added to the agreement of purchase and sale (APS) and/or title to assist in obtaining mortgage financing.

Budget 2021 proposes to remove this restriction in respect of an APS for a new home priced up to $350,000, entered into after April 19, 2021. Instead, the GST/HST New Housing Rebate will be available as long as the new home is acquired for use as the primary place of residence of any one of the purchasers or a relation of any one of the purchasers. Similar proposed amendments will apply to relax the conditions for GST/HST New Housing Rebates for owner-built homes.

Making Home Ownership More Accessible

Given the rising costs of home ownership this is great news for home buyers, and to a lesser extent, builders of new homes, as this allows “unrelated third parties” to be on title, which can lower borrowing costs and make homeownership more accessible to more buyers.

Our Tax Experts Can Help You Navigate the New Budget

We are Excise Tax Experts, and we understand nuances of the Excise Tax Act, the various rebates and the Canada Revenue Agency (CRA) rules and regulations. We maintain frequent contact with CRA decision makers so we can provide our clients with timely and complete advice about their rebates. We understand that the application process can often be challenging and stressful. Connect with us at (647) 281-5399 and we can show you how a rebate expert can help you to maximize your rebate and help you navigate the rebate process.

Share
Share on facebook
Share on twitter
Share on linkedin

Book a Consultation

Related Posts

How Much HST Do You Pay On A New Home?

  • Published by admin
  • on November 25, 2021

The Benefits of Purchasing A New Residential Rental Property

  • Published by admin
  • on November 18, 2021

What Is An Assignment Agreement?

  • Published by admin
  • on November 11, 2021

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.

Related Posts

How Much HST Do You Pay On A New Home?

  • Published by admin
  • on November 25, 2021
Buying a new house or condo is an exciting time in any person’s life. It signals new beginnings and new investments in our future. It also signals an important investment and a long repayment period. When buyers first purchase a new property, they may be shocked to find that…

The Benefits of Purchasing A New Residential Rental Property

  • Published by admin
  • on November 18, 2021
The idea of investing in a rental property is gaining a lot of interest across Canada. More people are realizing the potential advantages of owning rental property, including using it to grow their wealth. In order to help you effectively weigh the pros and cons of investing in real…

What Is An Assignment Agreement?

  • Published by admin
  • on November 11, 2021
With Ontario property prices on the rise and a shortage of homes, more people are wondering how they can buy a new home for less. Condominiums seem like the perfect solution. Builders and condominium corporations are taking advantage of the demand for housing by building condominiums. Condos are space-saving,…