Facts About Your HST
Did you know there is an HST Rebate available to anyone who buys a new built home in Ontario and meets certain eligibility criteria? We've listed some frequently asked questions with answers below so you can learn more about the subject.
1. What is the HST Rebate?
The Ontario HST Rebate is available to anyone who buys a new built home in Ontario and meets certain eligibility criteria.
2. What does the HST rebate consist of?
Currently, there is a 1.8 % Federal Rebate that is given to a person if the purchase price is under $350,000. If the purchase price is over $450,000.00 then the Federal Rebate is not eligible. Currently, there is a 6% Provincial Rebate that is given to a person off of the purchase price of their new house to a maximum of $24,000.00.
Please note that these amounts are always subject to change at the discretion of the government. The HST Schedule attached to your agreement of purchase and sale discusses this in more detail.
3. How will I receive the rebate?
If you are eligible for the rebate, the amount is automatically included as part of your purchase price calculation and will be shown on the closing statement of adjustments. You will not receive a cheque for the rebate. You will not have to pay any additional amount for HST in relation to your purchase price on closing, however HST will still be applicable on certain adjustments.
4. Do I qualify for the rebate?
You will qualify for the rebate if you purchased your new house for one the following reasons:
1. It will be your primary residence (meaning that you will be changing your government i.d. to the new address)
2. An immediate family member will be residing in the house as their primary residence (i.e. child, parents, sibling, grandchild or someone related to you by marriage).
5. What makes me non-eligible for the HST Rebate on Closing?
There are a few situations where you would not qualify to receive this rebate on closing. Those reasons are:
1. You are renting the home/condo
2. An extended family member will be living in the house as their primary residence (i.e. cousin, aunt, uncle, niece, nephew, etc.)
3. The house will not be your primary residence (i.e. it will be a vacation home)
6. I don’t qualify for the rebate on closing. Is there anyway that I can still receive it?
If you are not eligible for the rebate on closing (i.e. you are renting your house), you can apply for the rebate after you close. It is called the New Residential Rental Property Rebate Application. You will need to complete and submit the application yourself and you should speak to your lawyer about this on closing. You can find out more at the below website;
https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/rc4231.html
7. I have lived in my house for 3 months and have sold the house. I received the HST Rebate when I closed. Is there anything that I need to do?
Qualification for the rebate means that you need to have intended to reside in the property as your primary residence at the time the agreement of purchase and sale was entered into. Depending on the situation, you may still be eligible, however you should notify Reid’s Heritage Homes about your change in circumstance, as we will need to determine whether you will be required to pay the amount of the rebate. We may have to notify the Canada Revenue Agency of the change.
8. I bought my new house under my corporation’s name. Can I still qualify for the HST Rebate on closing?
No, you will not qualify for the HST Rebate on closing. If you purchased your home under a corporation’s name, you will have to apply for the rental rebate after closing.
9. I have been in my new house for almost 1 year and I just received a letter from Canada Revenue Agency letting me know that I qualify for the HST Rebate. What do I need to do with this?
Congratulations! There is a high chance that you don’t need to do anything with this letter as you most likely received the HST Rebate on closing. If you check your Statement of Adjustments that you received from your lawyer and see that you didn’t receive the rebate, then you can apply for the rebate at the following website (if you have not done so already);
https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/rc4231.html