Gotten a New Home or Condo Recently? Get Your HST Rebates

Our efficient team of professionals can assist you get a rebate of about $30,000! That is if you purchased a new condo or house recently and the rights to the new home wasn’t transferred to the builder in exchange for a lower purchase price. We offer free comprehensive consultations and we don’t charge you until the Government offers you your non-taxable new home HST rebate cheque. We have processed over $10 million of new housing rebates for people with similar cases and our reliable service ensures you get your due eligible rebate as soon as possible despite the fact that applying for the rebate on your own can be difficult and confusing.
Contact us now to see how much a refund you are entitled to get!

in Etobicoke, July 1, 2010, harmonized Sales Tax was implemented and this resulted to a rise in tax from 5% (GST) to 13% (HST) on new homes in the province. The Government introduced a rebate program to reimburse buyers for a portion of the additional new home tax in order to assist new homeowners deal with the increased cost of buying a new home.

If you have done any of the following listed below, you may be qualified for an HST rebate of up to $30,000 in Etobicoke:

• Purchased a new condo
• Purchased a newly constructed home
• Contracted someone to build a house
• Converted a non-residential property into a home
• Built a house
• Added a major addition to a home
• Got a contractor to renovate the condo or home extensively
• Substantially renovated a house or condominium
• Bought shares in a newly constructed cooperative housing project
• Rebuilt a home that was destroyed by fire

13% HST consists of a 5% federal tax and 8% provincial tax is charged to new home buyers in Etobicoke upon their purchase. In summer 2010, 75% of the Etobicoke portion of the HST, the new house HST rebate in Etobicoke reduces up to a new home purchase amount of $400,000. This leads in a high rebate at a provincial level of $24,000 ($400,000 x 0.08 x 0.75). Obtaining a federal rebate of up to $6,000 is also possible. Usually, any house purchase over $450,000 in other provinces, the new home rebate is clawed-back, but this is not the case in Etobicoke. For a million dollar home, $24k provincially and $6k federally for a total of $30k, the rebate is never clawed back, but only applies to the first $400,000 meaning the largest rebate possible.

The Canada Revenue Agency (CRA) issues the NRRP rebates and new housing HST rebates within two months. It sometimes takes about six months to process but rebates can be as fast as four weeks. All the list of information and documents needed from the homeowner in order to prepare the rebate application on their behalf can be provided by us. Even before we submit a claim to the CRA, we review supporting documentation and all expenses to guarantee eligibility.

Within two years of a new home or condo closing, the Etobicoke new home HST rebate or NRRP Rebate ought to be properly filed. You have up to two years to apply immediately after the completion of construction that is if you are applying for an HST renovation rebate.

A condo unit or new house must be used as the main place of residence by the purchaser or their immediate family, this means that people related by adoption ,marriage, common-law partnership, or blood in order to be eligible for the HST home rebate. The CRA take certain factors into consideration when determining whether or not a house is a person’s primary residence. These factors are, if they have used that address on any personal or public records such as a driver’s license, whether the person considers the house as their main residence and how long the individual has lived in the unit. Typically in southern Etobicoke, home and condo builders credit the total amount of a buyers’ HST home rebate towards the purchase price of the house. It is extremely rare that the builder pay the rebate directly to the purchaser. This gives the buyer enough money to furnish their new property without requiring a cash back mortgage.

There are many people in Etobicoke that are receiving demands from the Canada Revenue Agency to repay the HST new-home rebate they received upon closing on their real estate purchase. This claim arises when a third party has been added to a home or condos’ title at the insistence of the mortgage lender. All the buyers are disentitled if even a single registered buyer does not qualify for the new home HST rebate, according to the CRA, the Excise Tax Act.

• Siblings
• Spouses
• Grandparents
• Parents

The developer or builder will often incorporate the rebate into the listed price of a property in order to lower the “sticker price” of a newly constructed condo or house. Upon signing the purchase agreement, the rights to the proceeds of the new housing rebate are transferred to the developer or builder in exchange; they deduct the HST rebate amount from the purchase price. When the buyers’ HST new housing refund is issued the vendor knows they will be paid back. This reduces the purchase price for the buyer and relieves them from the headache of having to file for the refund themselves, this scenario is quite common.

According to the recent court case, the intention of a buyer affects their eligibility for a rebate. A property must have been purchased with the intention of using it as their primary residence or of a close relative. The buyer’s intent matters at the time of the initial purchase and not later. Meaning that a buyer who purchases a new property to flip it for profit is not eligible for a rebate since the condominium was never intended to be their primary residence. The main determining factor is how legitimate is the claimant’s usage of the property as his or her primary residence and the exact amount of time that a purchaser must reside in a home in order to be granted the rebate is handled on a case-by-case basis.

A reasonable amount of the condo flippers that were claiming HST new condo rebates wrongly were those buying first phase pre-construction condos and then selling them almost immediately after the construction was concluded soon as they were built. While this strategy has paid off handsomely in the Etobicoke area, the Canada Revenue Agency is now coming after these individuals for the HST rebates they erroneously received as well as interest and penalties. There have been many stories in the news lately about purchasers of new condos in Etobicoke pretending the units are going to be their primary residence in order collects the HST rebate on new homes. Although it was the condo developer who pocketed the HST rebate from the Government after the rights to it were transferred, the CRA comes after the condo buyer since they were the ones offside on their taxes

In the case of the owner-built homes, the highest Etobicoke HST new home rebate amount depends on if the person paid the provincial part of the HST when he/she bought the land upon which they extensively renovated or constructed. If the person did not pay the provincial portion of the H.S.T. when they bought the land, the rebate is equal to 75% of the provincial part of the HST paid on eligible construction costs only, up to a maximum amount of $16,080. If the person paid the provincial portion of the HST when they bought the land, the rebate will be equal to 75% of the provincial portion of the HST paid on the land as well as eligible construction costs, up to a maximum 24 thousand dollars. It is also possible to obtain a tax rebate for new housing from the Federal Government of up to $6 thousand.

A taxable self-supply is a person is considered to have sold and then repurchased a property either on condo is given to a person under a lease or on the date possession of the home on the date or the substantial renovation is complete. The HST applies on the date that the self-supply occurs the person will be considered to have paid and then collected the HST on the fair market value of the home. Within two years, you must file HST rental rebate application the new home of the self-supply date to be eligible for a refund.

Recreational properties like a cottage do not qualify for a tax refund or the HST rebate as it only applies to principal residences and rental properties.

HST Rebate for New Homes on Leased Land
Also, people who purchase a brand new mobile home located on land that they rent can still be granted a new housing HST refund. Eligibility for the provincial new home HST rebate in Etobicoke does not require you to own the land underneath your new property.

As soon as construction is more or less complete and you or a tenant or a close relative occupying the property can apply for the NRRPR or HST rebate. Immediately you close on the brand new home or condominium property you can apply for the HST or NRRP Rebate. Even when renovating a property, you can apply for an HST Etobicoke rebate or NRRPR once you are almost done with the work, provided you, a close relative, or a tenant is living in the property. Maximize the value of the rebate by include all renovation , it advisable to wait until all of the work has been completed, however, since you can only apply once, so it is important that you do. People who buy a new co-op apartment, condo, house, townhome, duplex, fourplex, triplex and so on, to rent out can only apply for the HST new residential rental property rebate if they have a tenant sign a lease for an apartment.