- Charlotte Adelaide TowerType: High RiseToronto
- Lake & EastType: High RiseOakville
- 299 Campbell AvenueType: High RiseToronto
- Type: High RiseMississauga
- Central ParkType: High RiseToronto
- UNION Towns and CondosType: Low RiseMarkham
- StationwestType: Low RiseBurlington
- 75 On The EsplanadeType: High RiseToronto
- Imperial GateType: High RiseMarkham
- Type: High RiseMarkham
- Old Market LaneType: High RiseVaughan
Nadlan realty | HST New Housing Rebate in Ontario | www.NADLAN.ca
HST Rebate to buyer of a new condo or home in Ontario
If you have purchased a brand new condo from a builder in Ontario in the past two years you are qualified for HST Rebate of up to $30,000. Builders claim the rebate on behalf of purchasers that are living in their new condo as their principal residence.
New condominium investors that rent out their units are being disallowed for the rebate by the builder, but can still claim their rebate from CRA through the HST Rental Rebate program.
In order to obtain the HST Rental Rebate, the owner must provide NADLAN Realty the following documents:
- Copy of the agreement of purchase and sale.
- Copy the closing statement of adjustments.
- Copy of a one year lease agreement. (Note: NADLAN Realty condos for lease are on long term lease agreements with minimum of one year lease)
Who is Eligible for a Condo HST Rebate?
HST rebate is for principal residence. Many investors do not know about the rental rebate that is offered from Canada Revenue Agency (CRA) to purchasers who intend to rent out the property as an income nvestment.
If you’ve purchased a newly built condominium as an income property, you may be eligible for a rental rebate of up to $30,000. The criteria are that you have at least a one year lease agreement and that the final closing took place in the past two years.
Buyers who purchase new homes or condos from builders in Ontario are asked on closing whether they intend on making it their principal residence. The reason is that builders include a portion of an HST rebate for principle residences in the original purchase price, which can be up to $30,000. This is a credit on a portion of the total HST payable on the property. Many buyers are confused because they are told that the final purchase price includes the HST – builders present prices that include HST, minus a rebate which is only applicable to purchasers who move into their properties. Investors that do not move into their units, required to add HST on closing.
If purchasers receive the HST rebate for principle residences in error. This may happen, for example, if they or an immediate family member intends to make this property their permanent residence but fails to do so. In this case, the purchaser receives a credit from the CRA that was not eligible for. The CRA looks for such cases and demands that the money will be returned with interests & penalties. The CRA contacts those purchasers two years after final closing.
Michael Tepper- Broker
NADLAN Realty Ltd.Brokerage