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.
What Is The New Housing Rebate?
How Does An Individual Qualify For The Rebate?
- You bought a new or substantially renovated home from a builder and you paid all the GST/HST due on your purchase.
- The builder sells you the home and the land on which the house is located under the same written agreement.
- When you sign a purchase and sale agreement on a new home, it is intended to be the principal home for you, your spouse or your family members.
- Ownership of the home is transferred to you after the construction or renovation is completed.
- No one occupied the home before possession was given to you and after the construction or renovation was completed.
- You recently undertook substantial renovations yourself, or hired someone to complete the renovations for you.
- You built, or hired someone to build, a new home.
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?
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!
