If you’ve purchased a new construction home in Ontario, the GST/HST New Housing Rebate is a program that you need to be aware of. In this post, we’ll take a closer look at how the program works, who qualifies, and how to claim the rebate.
What is the GST/HST New Housing Rebate?
The GST/HST New Housing Rebate is a program offered by the Canadian federal government that provides a rebate on the GST or HST paid on the purchase of a new home. The rebate is intended to offset the costs associated with the GST or HST, which can be a significant expense for homebuyers.
Who Qualifies for the New Housing Rebate?
To qualify for the new housing rebate, your home must meet certain requirements:
Your home must be located in Canada and be your primary residence. The rebate is available for both new houses and condos.
If you are purchasing a new home from a builder, the builder must be registered with the GST/HST New Housing Rebate program.
If you are building an owner-built home, it must never have been lived in before.
How to Claim the New Housing Rebate
To claim the new housing rebate, you must complete and submit a form from the government website within two years after the construction date. The form requires you to provide information about yourself and your home. You must also include a copy of your sales contract, a copy of your settlement statement, and other documents depending on your situation.
If you are claiming a rebate for a new home that you bought from a builder, the builder may be able to apply for the rebate on your behalf. The CRA will review your application and notify you of their decision. If you are approved for the rebate, you will receive a cheque in the mail.
How Much is the New Housing Rebate?
The new housing rebate is worth 36% of the GST or federal portion of the HST paid on a newly constructed home, up to a maximum of $6,300. In Ontario, you can claim up to 75% of the PST up to a maximum of $24,000.
The rebate is valid on homes that are considered fair to the market with a value of $350,000 or less. If you have purchased a home that is more than $350,000, you can still be eligible for partial federal rebates and provincial new housing rebates as well.
Other Programs for Homebuyers
In addition to the GST/HST New Housing Rebate, there are other programs available to help homebuyers. First-time homebuyers, for example, may be eligible for a separate, non-refundable tax credit that can be used to offset part of the costs of buying a home, such as legal fees and land transfer taxes. There are also other government benefits and programs you may be eligible for, so be sure to research all of your options.
If you have questions about these programs, don’t hesitate to contact us.
As a new home buyer, it’s essential to understand the GST/HST program and how it’ll impact your bottom line before buying. At Rego Realty, our experts are here to help you navigate the process and connect you with the appropriate counsel to clarify your closing costs and ensure you’re fully informed.
Amazing information but I need to learn more about it.