When GST became HST by adding the provincial portion (8% in Ontario) of this “value-added” tax to the 5% GST federal tax, a rebate program was created to reduce the 13% HST tax for new home purchases when purchase met certain qualifications. This rebate can be up to $27,000.
Qualifications – personal use or renting for a year
Qualifications for the HST rebate include occupying the condo for personal use or renting for 12 months from final closing. The months of occupancy or rent during interim occupancy does not count. The claim can be made immediately after final closing as soon as proof of either personal use, i.e.; changes of address on driver’s license or rent, i.e.; a one-year lease agreement is available.
Who gets the rebate?
Builders, on closing an assignment sale, will require the assignee to pay the rebate amount that was included as a credit in the original purchase price and leave it to the assignor to apply to CRA for the rebate, if assignors meet the qualifications to receive it.