Buying a home in Canada is difficult at the best of times, so it’s much more challenging when you’re a first-time buyer. To assist homeowners, the federal government has established a new housing HST Rebate Ontario. Let’s say you paid the HST to develop, buy, or significantly renovate a home in Ontario, and you want to use it as your primary residence or that of a family member. This case will entitle you to claim a share of the HST charged by the province and the federal government. There are many such rebates available to help homebuyers. Review the different programs available for new homebuyers to assist with some of the expenses associated with purchasing your first home.
What Is The HST Rebate?
The HST New Housing Rebate established by the Canadian government assists homeowners in recovering upto $16K in Harmonized Sales Tax (HST) paid when constructing or renovating their homes. In the case of land purchase, you can receive upto $24K based on the sales tax paid. To support homeowners in recovering some of the HST charged when constructing or significantly renovating their properties, the Government of Canada established this discount for new and pre-built homes.
What Is The Eligibility Criteria?
To be eligible for the refund, you must meet the following requirements:
- The residence must be your primary residence.
- The building must have been completed within the last two years.
- You should have either constructed a new house, demolished your current home, or added a massive expansion that more than doubles the size of your current home.
In the case of houses on rented land, you will be eligible only if the contract permits you to purchase the land or if the lease lasts for at least 20 years. If you bought shares in a cooperative housing project, you should have the unit as your primary residence or for a close relative to be qualified for the rebate. Trailer homes and floating houses are also eligible for the rebate. If you consider your mobile home as a proprietory home or a bought home, you can claim the HST rebate.
What Is The Application Process?
The refund is only open to those who fulfill all of the requirements. It applies to a percentage of the provincial HST charged to the province. You must submit the request for a New Home HST Rebate in Ontario within twenty-four months of the termination date of a new home or the completion of modifications. The Canada Revenue Agency will process the requests within two months of submission. Some of them have received the rebates within one month, but it might even take four to six months.
Since the scheme is only valid for two years after the end of the development or major reconstruction, it is critical to take advantage of it before the eligibility expires. In a merger, co-ownership arrangement, even if a company participates, the New Housing Rebate is not applicable. If you do not follow the rebate’s terms, you will be expected to pay the whole amount back.