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What Is the HST Rebate on a New Build Home or Condo?

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What Is the HST Rebate on a New Build?

Purchasing a new residential home or condominium from a builder may qualify you for the HST Rebate on the property. The program is called the HST New Housing Rebate and it has been put in place by the provincial and federal governments. The Canada Revenue Agency is responsible for running the program and issuing rebates to qualified applicants.  
How does the HST work on new build home sales? The way that the HST is charged on a new property will depend on whether the home will be a primary home for the purchaser or if the property will be used as an investment property. In both cases, the property will be eligible for an HST New Housing Rebate, but the actual closing costs for the purchaser and the method of claiming the rebate can differ significantly. The typical charge for HST on a new property ranges from $19,000 - $31,000, so it is very important to understand how the HST works.
In the case that the new property will be owner-occupied as a primary residence, the builder will typically pay the HST on the purchaser’s behalf. The HST is not added into the purchase price of the property and the builder will apply for the HST rebate for the property.
The purchaser will be responsible for paying the HST due on the property when the property will be used as an investment property. This HST amount will be due along with all of the other closing costs by the final closing date. The purchaser will be responsible for filing for the HST New Housing Rebate.  Statistics show that only a small percentage of the potential HST rebates were claimed in 2014. This means many investors are not receiving the money that they are entitled to.  

Paying the HST on an Investment Property

The considerable (and often surprising) HST closing costs must be paid in full by the final closing date. If the payment is not made, the entire closing may fall through. This can lead to loss of deposit for the property and, in some cases, the builder may pursue legal action for damages.
The HST responsibilities are still relatively new and many investors find out the hard way that they are responsible for this significant cost, sometimes just days before it is due on the final closing date. It is a large amount of money to pay on top of the closing costs that are already due. Where can investors turn for financial help paying the HST?

HST Rebate Loans

For investors scrambling to secure funds for the HST amount due on closing, an HST Rebate Loan is both a viable and effective method of short-term financing. HST Rebate Loans are available for investors who qualify for the HST New Housing Rebate and also have acceptable credit and debt ratios.
An HST Rebate Loan can be secured as a second mortgage against the investment property or issued as an unsecured loan. The loan will provide the funds necessary to pay the HST due on closing and will remain open until the HST rebate has been received from the CRA. The investor pays a reasonable fee for the service as well as any interest that is accumulated during the HST rebate process.
HST relief companies provide professional financing services for investors who are eligible for the HST rebate on a new build. Discover the services and convenience they can provide for your investment property closing today.

Built a new home - is there an HST rebate?

My dad build a new home on a piece of land that my grandparents own.  Is there any sort of HST rebate for this type of new home?


By HST Relief (Admin)
Yes, there is.  This is a version of the substantial renovation rebate. Our company, HST Relief, puts together these filings for clients like your father.  The maximum rebate you can receive is $24,000. 
Give us a shout at: 1.866.832.1990  or email us at: info@hstrelief.ca

Qualifying for HST rebate if convert new residential property to commercial


I am interested in purchasing a new residential unit but plan to convert it into a commercial unit. Will I still be eligible for the HST rebate?




By HST Relief (Admin)
Hi Rene. Good question. The HST Rebate programs in Ontario only apply to principal or primary residences and residential rental properties.  So, if you plan to use the new build investment property for recreation (like a second home or cottage), an office or commercial space, you will not qualify for the HST Rebate even though you will be required to pay a portion of the HST (about 7.8-8%) to the CRA due upon closing, 

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