09/19/2022
In an effort to help homeowners deal with the increased cost of buying a new home, the government introduced a rebate program to reimburse up to 75% of the HST they paid on a new home or condo up to $400,000 at the provincial level ($400,000 x 0.08 x 0.75 = $24,000). It is also possible to obtain a federal rebate of up to $6,000 totalling the rebate up to $30,000!
A huge advantage to this program is that often, builders will just deduct the rebate from their purchase price, thereby reducing the total mortgage amount you need to take out as a homebuyer who plans to reside in the property. However, there are different rules and requirements for investors who plan to lease our the property. Under an NRRPR, investors must pay the HST in full at the time of purchase and will only receive the rebate two or three months later.
Homeowners are eligible if they have done any of the following in Ontario:
Purchased a newly constructed home
Purchased a new condo
Built a house
Contracted someone to build a house
Substantially renovated or contracted someone to substantially renovate a house or condominium
Added a major addition to a home
Rebuilt a home that was destroyed by fire
Bought shares in a newly constructed cooperative housing project
Converted a non-residential property into a home
Caveat: only close family members can be registered on the property. If anyone is not closely related, you will be required to return the provincial rebate.
Contact me today to see how this rebate can help you afford a brand new home!
