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Short guide to getting an HST new housing rebate

23 Sep Posted in Family

After the Canadian government introduced the GST/HST New Housing Rebate, homeowners have the opportunity to get part of their money back when purchasing a new house or paying for a substantially renovated house. The government decision will allow you to recover a part of the Goods and Services Tax (GST) and Harmonised Sales Tax (HST), as long as you are Canadian and eligible for the refund, but you need to follow a certain procedure in order to get your money back. Keep in mind that there is a distinction between owner built house and a purchased house. You might be entitled to the first time home buyers rebate in either cases, but you will need to fill different files. The process of getting a rebate is complex, not to mention that you are not guaranteed to succeed. This is why it is important to resort to specialised services. A specialist will help you every step of the way, making sure you recover the maximum amount.

Who is eligible to receive an HST rebate?

 

Whether you purchase a house from a builder or you build or renovate your own house, you can be eligible to receive an HST rebate. There are certain criteria you need to meet in both cases to receive your tax money back. You can qualify for an owner built rebate, is you have done one of the following:

  • you have built or hired someone to build a house
  • you substantially renovated or hired someone to renovate at least 90% of your existing house
  • you have built or hired someone to build an addition to your house
  • you converted a non-residential building into a house.

Homeowners that purchased their house from a builder are entitled to a rebate even when leasing the land from the builder, as long as they have the option of buying the property in the next twenty years.

 

What type of property qualified for a rebate?

 

In general, any type of house can qualify for the HST rebate, including detached single-unit houses, semi-detached single-unit houses, duplexes, condominiums, units in cooperative houses, mobile homes and floating homes. The list may also include rooms that are rented on short term basis such as bed and breakfast rooms. Irrespective of the type of house you own, you should check whether you are qualified for a rebate, because the list is comprehensive.

 

How much money can you receive?

 

The Canadian government returns a federal rebate of up to $ 6,3000 to qualifying homeowners. If the value of the house exceeds $ 350,000, the return will be lowered, while houses exceeding $ 450,000 after building or renovation will not qualify for a rebate anymore. In such cases, homeowners should focus on receiving a provincial rebate. Make sure you check whether your province offers rebates or not, before you give up the idea altogether, because the returns can reach $ 26,000.

 

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