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  • Sep 18th, 2020 3:33 pm
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Deal Addict
Nov 23, 2003
1843 posts
376 upvotes
I just filled the forms myself. Took me 10 mins.

450 plus hst for it is ridiculous.
Sr. Member
Feb 19, 2019
812 posts
872 upvotes
Stouffville ON
AddictRC wrote:

1. Whether it was rental or primary residence, the max the builder can get from the govt is 24k.
Minor clarification. It's not the builder who is getting the rebate, it is the buyer. In the case of the principal residence the buyer can assign the HST rebate to the builder, this form is part of the agreement of purchase and sale. However if this is a rental, the buyer is not permitted to assign the rebate to the builder and as you stated the buyer has to apply with cra.
Full Time and Full Service Realtor
Newbie
Apr 1, 2018
7 posts
Does it matter if the landlord is a non-resident of Canada from tax perspective when closing the new build and applying for the rebate after?
Newbie
Sep 29, 2013
39 posts
25 upvotes
Singh_21 wrote: I just filled the forms myself. Took me 10 mins.

450 plus hst for it is ridiculous.
Good to hear. Is it available online somewhere? Both my lawyer and mtg broker said it was complex for some reason. I believed them cause there are multiple companies doing this as a business.
Member
Sep 11, 2017
258 posts
168 upvotes
senasena wrote: Yes, but this has to do with the federal portion of the hst. I don't remember the exact numbers since quite frankly the majority of the properties around GTA are over $450K. The max combined federal and provincial HST rebate would be around $30K (6K federal and $24K provincial), the Ontario portion doesn't change (once the 8% provincial part is reached, which is in pretty much every case in GTA), but for the federal the higher the house price the lower the rebate, and it gets completely eliminated at the $450K mark (or around).
With most properties in the GTA being >$450k precon investors will end up paying more hst in closing then they will recoup in their hst rebate. I am going through this situation soon and working the numbers it’s not an insignificant amount...
Sr. Member
Feb 19, 2019
812 posts
872 upvotes
Stouffville ON
FedExpress wrote: With most properties in the GTA being >$450k precon investors will end up paying more hst in closing then they will recoup in their hst rebate. I am going through this situation soon and working the numbers it’s not an insignificant amount...
Yes, only a portion is refunded.
Full Time and Full Service Realtor
Newbie
Sep 29, 2013
39 posts
25 upvotes
Can you give an example with numbers? The person I spoke through from rebates4u said we should get all of 24k back cause that is the max amount the builder would have gotten from cra anyways. With investment, they are just passing it on to the buyer to go get it themselves after paying them 24k.
Member
Sep 11, 2017
258 posts
168 upvotes
AddictRC wrote: Can you give an example with numbers? The person I spoke through from rebates4u said we should get all of 24k back cause that is the max amount the builder would have gotten from cra anyways. With investment, they are just passing it on to the buyer to go get it themselves after paying them 24k.
You will pay much more then $24k hst on closing. Depends on your purchase price. It will be significant.
Sr. Member
Feb 19, 2019
812 posts
872 upvotes
Stouffville ON
FedExpress wrote: You will pay much more then $24k hst on closing. Depends on your purchase price. It will be significant.
No, in the typical situation, and an absolute vast majority of cases when buying from the builder the hst and rebate is included in the price already. It rarely happens that hst is on top of the advertised price.
Let's say for example the person is purchasing a property (condo or subdivision from a large builder) with an advertised price of $1,000,000.
If this is purchased as investment the buyer can't assign the rebate to the builder.

Here are the numbers (not counting development charges and other fees, deposits etc):
Purchase price: 1,000,000
HST rebate not assigned: 24,000
Total to the builder: 1,024,000

On the statement of adjustment you will see (rounded):
Purchase Price: 906,000
HST: 118,000
Total to the builder: 1,024,000

It itsn't always like this but pretty much all large builders advertised price is inclusive of hst and hst rebate.
Small custom home builders may do it differently.
Full Time and Full Service Realtor
Newbie
Sep 29, 2013
39 posts
25 upvotes
senasena wrote: No, in the typical situation, and an absolute vast majority of cases when buying from the builder the hst and rebate is included in the price already. It rarely happens that hst is on top of the advertised price.
Let's say for example the person is purchasing a property (condo or subdivision from a large builder) with an advertised price of $1,000,000.
If this is purchased as investment the buyer can't assign the rebate to the builder.

Here are the numbers (not counting development charges and other fees, deposits etc):
Purchase price: 1,000,000
HST rebate not assigned: 24,000
Total to the builder: 1,024,000

On the statement of adjustment you will see (rounded):
Purchase Price: 906,000
HST: 118,000
Total to the builder: 1,024,000

It itsn't always like this but pretty much all large builders advertised price is inclusive of hst and hst rebate.
Small custom home builders may do it differently.
So no matter what, the builder still get's 1,024,000. They will ask me for the 24k and I will have to apply to get it back once I have a lease in place right?
Where is the so-called "extra" that I might have to pay?

P.S.> Quebec builders like to say +HST + QST. Sounds good till you calculate what 14.975% of 469K is haha!

https://www.realtor.ca/real-estate/2157 ... a-capitale
Sr. Member
Feb 19, 2019
812 posts
872 upvotes
Stouffville ON
AddictRC wrote: So no matter what, the builder still get's 1,024,000. They will ask me for the 24k and I will have to apply to get it back once I have a lease in place right?
Yes.
AddictRC wrote: Where is the so-called "extra" that I might have to pay?
I don’t know what extras you are talking about.
Full Time and Full Service Realtor
Newbie
Sep 29, 2013
39 posts
25 upvotes
senasena wrote: Yes.

I don’t know what extras you are talking about.
I thought I read earlier something along those lines. If you and the rebates4u.ca guy said I won't pay extra... I feel better now. My mtg broker said she got "most" of it back but her house was under 450K. She did not know the details.

Why the heck are there multiple websites advertising this service?

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