Housing Rebates

Housing Rebates 2018-05-24T16:26:38+00:00

New Housing Rebates

The GST/HST new housing rebate allows an individual to recover some of the goods and services tax (GST) or the federal part of the harmonized sales tax (HST) paid for a new or substantially renovated house that is for use as the individual’s, or their relation’s primary place of residence, when all of the other conditions are met. Additionally, other provincial new housing rebates may be available for the provincial part of the HST whether the GST/HST new housing rebate for the federal part of the HST is available or not.

In certain circumstances, a transitional new housing rebate may be available in addition to any GST/HST new housing rebate and provincial new housing rebate for which you may be eligible, even if the house is not your primary place of residence.

The new housing rebate is not available to a corporation or a partnership.

Owner-Built Houses/Substantial Renovation

You may be entitled to claim a GST/HST new housing rebate for an owner-built house if you:

  • built, or engaged someone else to build, a house on land that you already owned or leased
  • substantially renovated, or engaged someone else to substantially renovate, your existing house (at least 90% of the interior of the existing house must be removed or replaced to be a substantial renovation)
  • renovated, or engaged someone else to renovate, your existing house and built, or engaged someone else to build, a major addition to your house that at least doubles the size of the living area of the house (for example, the addition of a full second story to an existing bungalow. Adding a sun porch, sun room, family room, or bedroom by itself is not a major addition)
  • converted a non-residential property into your house
  • purchased a new or substantially renovated mobile home or a new floating home from a builder of the home (this includes the manufacturer or vendor of the home) or you or someone you hired substantially renovated such a home. For a mobile or a floating home, you have the option of claiming either the owner-built new housing rebate or the new housing rebate for a house purchased from a builder
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What Is A Condo HST Rebate?
Am I Eligible?

This rebate is offered only to purchasers who make the property their principal residence. Many people are not aware that the rental rebate is offered to any purchaser who intends to use the property(in this case your condominium) as an investment and rather lease the property to a tenant.

You may be eligible for a rental rebate of up to $30,000. The criteria are that you have at least a one year lease agreement and that the final closing took place in the past two years.For units with a FMV between $350,000 and $450,000, the rebate for some of the GST or federal partof the HST is gradually reduced. No rebate is available for the GST or federal part of the HST if a unit has a FMV of $450,000 or more. If you purchase a qualifying residential unit that is a residential condominium unit where possession of the unit is transferred to you before the complex is registered as a condominium, the tax is payable (and you have to determine the FMV of the condominium) on the day that is the earliest of the following dates: the day that ownership of the unit is transferred to you; and the day that is 60 days after the day the complex is registered as a condominium.

Residential Rental Property

If you have purchased a brand new home or a condo from a builder in the past 2 years you are qualified for an HST Rebate of up to $30,000. Most builders claim the rebate on behalf of purchasers that are living in their new home or a condo as their principal residence.

New condominium and home investors that rent out their units are being disallowed for the rebate by the builder but can still claim their rebate through the HST Rental Rebate program.

In order to obtain the HST Rental Rebate, the owner must provide us the following documents:

  • Copy of the agreement of purchase and sale.
  • Copy of the the closing statement of adjustments.
  • Copy of a 1 year lease agreement.
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Houses Purchased From A Builder

You may be entitled to claim a GST/HST new housing rebate for a house purchased from a builder if you:

  • purchased a new or substantially renovated house (building and land) from a builder
  • purchased a new or substantially renovated mobile home or a new floating home from a builder (this includes the manufacturer or vendor)
  • purchased a share of the capital stock of a co-operative housing corporation (co-op)
  • purchased a new or substantially renovated house from a builder where you leased the land from that builder under the same agreement to buy the house and the lease is for 20 years or more or gives you the option to buy the land

In most cases, there is no requirement to submit supporting documentation with your application. However, you do have to send invoices with your worksheet where the vendor did not charge the GST/HST on the invoice (photocopies of these invoices will be accepted). You also may be contacted and requested to submit proof of occupancy.

You also have to keep all your original invoices and the other documents you used to complete the forms for six years in case CRA ask to see them. Only original invoices in the name of the claimant or the co-owners are acceptable. CRA do not accept photocopies, credit card or Interac slips, or account statements, without the original invoices. CRA do not accept estimates or quotes as proof.

We have prepared and successfully submitted new housing rebate applications for many clients and are proud to say that we have been allowed maximum rebate by the CRA in a majority of cases.

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