Who’s eligible for the GST/HST rebate?
As long as you, and anyone else you’re buying with, are an individual home buyer and not a corporation or business partnership, you’re eligible for this rebate if:
- Your home is listed as your primary place of residence, and
- You’ve purchased a new or substantially renovated a single, semi, condo, townhouse, mobile, or modular home from a builder, or you purchased a share of interest in a co-operative home.
And yes, first-time home buyers are also eligible for the GST/HST new housing rebate, on top of other programs available to them.
Calculating the GST/HST New Housing Rebate
For both the GST and HST rebates, the calculations are similar. Let’s take a look at how you would calculate the taxes and rebates on a home purchased in Ontario.
First, we’ll say the home you purchased was valued at $320,000. In some cases, the builder of your home will have already included the HST in the purchase price. The only difference here is that you’ll be able to automatically include the purchase price plus HST amount in your mortgage. However, in all other cases, you’ll pay whatever HST rate is applicable in your province or territory (13% in Ontario) on top of the $320,000 pre-tax price:
$320,000 x 13% = $41,600 ($16,000 GST portion of HST and $25,600 provincial portion of HST)
Next, we’ll calculate the value of the rebate that can be claimed. In this case, it’s 36% x $16,000 ($5,760) for the GST portion of the HST and 75% x $25,600 ($19,200) for the provincial portion of the HST. That adds up to $24,960.
It’s important to note that for new homes in Ontario, the maximum rebate amount for the provincial portion of the HST is capped at $24,000. It’s the maximum amount available on any new home valued at $400,000 or more.
The GST/HST new housing rebate is a simple rebate to claim. However, unlike some other rebates and incentives, it’s not automatic. Instead, it requires you to apply manually.
NOTE: Speak to your Lawyer prior to your purchase for advice on how to claim this rebate.