GST/HST New Housing Rebate Simplified
When buying a pre-construction home in Ontario, you may qualify for the GST/HST New Housing Rebate. This rebate can save you thousands and is usually included in the price. Here’s what you need to know:
How It’s Calculated
1. Homes Under $368,200
- Formula: Price ÷ 1.052
- Example:
- Builder Price: $350,900
- Net Price: $333,555
- Rebate Total: $26,017
2. Homes $368,200–$424,850
- Formula: (Price + $28,350) ÷ 1.133
- Example:
- Builder Price: $400,900
- Net Price: $378,861
- Rebate Total: $27,214
3. Homes $424,850–$484,500
- Formula: (Price + $52,350) ÷ 1.193
- Example:
- Builder Price: $430,900
- Net Price: $405,071
- Rebate Total: $26,831
4. Homes Over $484,500
- Formula: (Price + $24,000) ÷ 1.13
- Example:
- Builder Price: $600,900
- Net Price: $553,009
- Rebate Total: $24,000
Eligibility Criteria:
To qualify for the GST/HST New Housing Rebate, you must meet the following conditions:
- Must be a new pre-construction home from a developer.
- The home must be the primary residence of the purchaser or their immediate family. For rental properties, a lease agreement for at least one year is required.
Application Process
- Owner-Occupied: The rebate is assigned to the developer and factored into the purchase price.
- Rental Properties: The purchaser pays the rebate amount at closing and applies for the rebate post-closing with a one-year lease agreement.
- Assignment Sales: The new purchaser applies for the rebate post-closing with proper documentation.
Important Considerations
- If plans change from occupying to renting, you may still qualify for the rebate.
- Non-family co-owners must pay the rebate at closing but can apply for the rebate if the property will be rented.
- Applications must be submitted within two years of the closing date.