The purchase and sale of a residential property can be a stressful time for home buyers. As some might already know, a buyer who is looking to purchase a brand new or substantially renovated home may be entitled to the GST/HST New Housing Rebate, which is also frequently referred to as the New Home Rebate. However, there are few conditions that must be met in order for one to be eligible for it.
When you receive a denial for the HST Rebate, that usually comes in the form of a Notice of Assessment. Being denied essentially means that the Canada Revenue Agency has determined you do not qualify for the rebate, or simply that paperwork was not submitted correctly. Before you give up on being paid, it’s important to do your own due diligence and search for answers as to why you haven’t been able to recover the value of the rebate, as outlined in the agreement.
Here is what you need to know about the GST/HST New Housing Rebate and a few key reasons as to why your rebate application may have been denied.
What Is The GST/HST New Housing Rebate?
When you purchase a newly built home or a new residential rental property, part of your budget will have to go towards the GST (goods and services tax) or HST (harmonized sales tax) on top of the purchase price, just like with everything else we purchase. There’s no escaping it, but fortunately, you may be eligible to receive some of that money back into your pockets.
Here are some terms you will need to meet in order to qualify for the rebate as well as the maximum amount you can receive back from the government.
Owner Built Homes
New Residential Rental Property
Substantially Renovated Home
If You're Buying A New Home From A Builder
When it comes to purchasing a newly built house, the builder will typically file a rebate application on your behalf. At the time of closing, you will “assign” the rebate amount to the builder which will reduce the HST paid and the price of your house. As such, you will not receive a rebate directly from the CRA. However, in order to be eligible for the rebate, you or a close family member must plan on living in the house. If it was purchased for investment purposes, you’ll be required to pay the HST in full and will need to apply for New Residential Rental Property Rebate once you have a tenant with a one-year lease. This will apply to condominiums as well.
Does The Purchase Price Affect The Amount I Can Receive?
Were You Denied A Rebate?
Applying for the rebate yourself and dealing with the CRA can be a pain. That’s why Sproule + Associates is here to help. They may have turned you down for a variety of different reasons, but we can file a Notice of Objection for you and handle all communication with them.
Want To See The Maximum Amount You Can Qualify For?
Use our rebate calculator to determine how much you can receive for your new or substantially renovated house in Canada. If you need help applying for the GST/HST New Housing Rebate, or if you have any rebate questions, contact us today. Here at Sproule + Associates, we are committed to providing an exceptional experience to home buyers by treating them like family. Plus, we know how to navigate our way around the CRA so leave the hard work to us. All you have to do is wait for your rebate to arrive in the mail!