Real Estate

GST/HST new housing rebate

  • Last Updated:
  • May 19th, 2020 5:26 am
[OP]
Sr. Member
User avatar
Jul 25, 2015
650 posts
322 upvotes
Burnaby, BC

GST/HST new housing rebate

What will this rebate bring?
Higher prices or Lower, is the Gov giving more freebies to save the builders? Something doesn't sound right.

https://www.ratehub.ca/blog/what-is-the ... pfocus-mtg


"Fortunately there’s some relief from this cost, thanks to the GST/HST New Housing Rebate. In addition to a number of first-time homebuyer programs that you may be eligible to participate in, the GST/HST New Housing Rebate is one thing you’ll want to add to your list of to-dos when budgeting for your new home. In this case, filling in a single form can save you thousands of dollars in taxes if you’re buying a newly constructed home."
9 replies
Deal Addict
Nov 13, 2013
2434 posts
1204 upvotes
Ottawa
This is not new. Is largely priced in. Is increasingly irrelevant as it phaese out below the prices of most homes in many markets.
Deal Addict
Feb 19, 2019
1046 posts
1413 upvotes
Stouffville ON
Piklishi wrote: What will this rebate bring?
Higher prices or Lower, is the Gov giving more freebies to save the builders? Something doesn't sound right.
This has been in existence for many years, and changes nothing. Almost every unit sold in Ontario (can’t speak for other provinces) has the rebate included in the price.
fogetmylogin wrote: Is increasingly irrelevant as it phaese out below the prices of most homes in many markets.
For the federal portion yes.
The provincial rebates work differently, there is no price limit in Ontario, but yes a $24K rebate on a $3M home is more like a rounding error, but makes a difference on a $500K home.
Full Time and Full Service Realtor
Newbie
Nov 15, 2019
70 posts
27 upvotes
If you buy a new construction home, the GST/HST New Housing Rebate is built into the sticker price, and if you move into your home once it is built, it will remain that way.

However, if you buy a new build, and you rent it out, then on final closing, the GST/HST New Housing Rebate will be added to the purchase price, and you will have to apply to Canada Revenue Agency to receive back the rebate. You need to make sure that you meet the criteria for the rebate application.

If you buy a new build on assignment, then most builders will require that you pay the GST/HST New Housing Rebate amount on closing, and apply to Canada Revenue Agency for the rebate, even if you intend to live in the unit.
Sr. Member
Feb 27, 2010
553 posts
303 upvotes
If u buy a home for 760000(price includes gst) for investment purposes on a new home, after adding 24000 and multiplying 13% I get an HST total of 90000... do I have to pay that number at closing to the builder?
Sr. Member
Feb 27, 2010
553 posts
303 upvotes
If u buy a home for 760000(price includes gst) for investment purposes on a new home, after adding 24000 and multiplying 13% I get an HST total of 90000... do I have to pay that number at closing to the builder?
Deal Addict
Feb 19, 2019
1046 posts
1413 upvotes
Stouffville ON
juve4lfe wrote: If u buy a home for 760000(price includes gst) for investment purposes on a new home, after adding 24000 and multiplying 13% I get an HST total of 90000... do I have to pay that number at closing to the builder?
No.
You pay $784K and if you meet the conditions (ei 1 year lease in place) you can apply for the rebate from cra and get the $24K back, your net result is still $760K but you are out of pocket $24K until you get the rebate back.
Full Time and Full Service Realtor
Sr. Member
Feb 27, 2010
553 posts
303 upvotes
senasena wrote: No.
You pay $784K and if you meet the conditions (ei 1 year lease in place) you can apply for the rebate from cra and get the $24K back, your net result is still $760K but you are out of pocket $24K until you get the rebate back.
So when I get a mortgage...is it based on 760000 or 784000 purchase price? Do I give an extra 24000 as a closing cost to the builder?
Newbie
Feb 14, 2020
6 posts
3 upvotes
juve4lfe wrote: So when I get a mortgage...is it based on 760000 or 784000 purchase price? Do I give an extra 24000 as a closing cost to the builder?
784k - You apply for it after final closing.

I bought assignment sale for primary resident as a first time home buyer and had to pay HST along with other closing cost to builder, but I got full 24k back from CRA within a month after I applied.
Sr. Member
Feb 27, 2010
553 posts
303 upvotes
hasbeenkid wrote: 784k - You apply for it after final closing.

I bought assignment sale for primary resident as a first time home buyer and had to pay HST along with other closing cost to builder, but I got full 24k back from CRA within a month after I applied.
Ok thanks

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