Real Estate

HST Rebate confusion

  • Last Updated:
  • Mar 16th, 2019 8:23 pm
Mar 7, 2019
1 posts
1 upvote

HST Rebate confusion


My sisters and I are in the process of investing in a pre-construction property this year. The price of the home is 480k including HST. This property will not be our place of primary residence and we will be renting it out. I know that I would need to pay the builder the HST on top of the purchase price because we are renting it out. Are we paying the builder the total HST rebate of 480k which would be around 62k or are we just paying 24k (which is the maximum rebate which we will get back). Any clarification would be helpful!
4 replies
Deal Addict
Feb 5, 2009
2809 posts
You will obviously need to read through your contract, however what is most likely happening the $480K purchase price includes hst net of rebate, so in your situation you will need to pay the builder $24K on top of the $480K purchase price, and then claim $24K rebate from cra.
Oct 21, 2013
272 posts
waterloo, on
As pp said.

You will get max rebate of 24k.. you need to pay that to the builder and then claim the amount from cra.

Also note, that purchase price in this case will be different. 480k is most likely including hst. If builder is not claiming hst rebate, then base price calculations are different.

It should all be mentioned on your statement of adjustments once the property closes.
Sr. Member
Nov 12, 2014
910 posts
Kingston, ON
You can't assign the rebate to the builder as it's not your principal residence. Be sure you apply for the correct rebate (Rental one). As others have said, you'll pay say $425,000 plus HST = 480,000. if the $480 includes HST. Then you claim back $24k of HST rebate through CRA. I think....tricky area and mistakes are made all the time by lawyers who don't understand the HST rebate can't be assigned to the builder in this case.
Sr. Member
Feb 19, 2019
848 posts
Stouffville ON
The net results is exactly the same, the difference is for principal residence you assign the rebate of $24K to the builder , for rental you have to apply to CRA yourself, so it takes little bit longer to get the money back.
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