What Is It?
The government of Ontario has created an HST rebate as a way of aiding new homeowners with the steep costs of buying a home. The goal of the HST rebate is to lessen the financial burden many first time buyers experience in today’s economy.
What is the Process?
The average processing time for the New Home rebate is between 2 to 6 months from the submission date. Applications must be properly filled out with all required information, invoices and supporting documents and sent to the Canadian Revenue Agency.
New Home HST Rebate applications need to be filed no later than 2 years from the initial closing date of the home or condo. For the application to be valid, the purchased premises must be the primary residence of the applicant(s).
There is a specific definition of primary residence according to the Canada Revenue Agency. Simply put, the house or condominium must be used as the main living space and must have its correct address stated on all official and personal public records. This includes IDs, passports, health cards, etc. Failure to prove the primary residence while applying for the HST rebate would result in a rejected application or even possible penalties.
Who Can Apply?
Generally, there are 3 categories for who can apply for a rebate. Paperwork can easily get complex, therefore, it is recommended to work with a rebate specialist to fast-track and ensure the accuracy of the process.
There are 3 main applicant categories:
- The HST rebate is an option for those who purchased a new home, built a new home, or significantly renovated home. As mentioned above, the applicant(s) must be the primary resident(s) of the property.
- You can apply for the HST rebate if you constructed a home or substantially renovated home. It is accepted if applicants hired an outside contractor to complete the renovation.
- Individuals who acquire shares in co-operative housing. These individuals must have intended to use a unit for use of their own or relations’ primary place of residence.
Conclusion
The HST New Homes Rebate can repay Ontario homeowners a considerable amount of money and make a big difference in one’s bank account. Here at New Housing Rebate, we want Ontarians to be aware of these rebate opportunities so more of the demographic can attain a stable and upright financial situation.
