HST Refund on New Home Construction in Ontario

Buyers of new homes and condos in Ontario ought to understand the process of getting a HST refund on new home construction. Questions pertaining to who qualifies for a rebate, and how much rebate one is entitled to often face many buyers and investors. Here are some crucial facts that shed light on the issue of HST rebates. 

Who Qualifies for Rebates?

Contrary to public perception, HST rebates are not exclusively offered to pre-construction buyers. Those who purchase newly-built residences that have never been occupied, and individuals who have constructed new homes from scratch are also eligible for a HST refund on new home construction.Owners who have undertaken renovation affecting more than 90% of the house similarly qualify for rebates. 

Which is the Right HST Rebate to Claim?

Many investors and buyers apply for the wrong rebate program, something that lowers their chances of receiving payouts. There are two HST programs, which are New Homes Rebate and New Residential Rental Property Rebate. The former is designed for end-users while the latter is meant for investors. Knowing which program one should sign up for increases his/her chances of receiving rebates. 

Rebate Value

HST is basically a combination of provincial and federal taxes. In Ontario, HST amounts to 13% of a new home’s purchase price. Those who buy property whose value is below $350,000 qualify for rebates of up to $30,000. The Canadian Revenue Authority undertakes regular audits to ensure that investors and buyers do not fraudulently receive a HST refund on new home construction. Individuals who are found to have used underhand methods to get rebates are often asked to refund the entire amount. 

Are you eligible for a HST rebate? If so, do not hesitate contacting us via (888)660-4413 to increase your chances of getting maximum payout.