HST New Housing Rebate in Ontario - Taxes due on closing or included in mortgage?
I understand from this thread that the calculation goes like this (assuming this is correct):
A - ($439,900 + $24,000) / 1.13 = $410,530.97 (real purchase price)
B- HST Housing rebate = ($24,000) max. You get this and the SOA shows this as a credit. In turn, you assign this credit over to builder so they can claim for you.
C - HST taxes = $410,530.97 *.13 = $53,369.03
A - B + C = $439,900 selling price
From that calculation, I understand that the total HST is $53,369.03, and then the $24,000 rebate is assigned to the builder. But the remaining difference in tax ($53,369.03 - $24,000 = $29,369.03) - how does that get paid for? Is that included in my mortgage principal because the builder has "inflated" the price to cover taxes? Or am I responsible for covering that $29,369.03 in cash at closing?
Trying to figure out how this works before I get too far down the road, just to find out we can't afford it.