In today’s real estate landscape, it’s not uncommon for a condo purchaser to purchase in June and close even one year later. It’s also not uncommon to have a time gap between the closing date and the move in date. So much so, that a buyer might decide to rent out the property prior to moving in. This is a sure way to forfeit the HST rebate that would normally be available to a new buyer.The fact is, whether the HST rebate is built into a purchase price or not, the condominium must be used as a primary residence – in other words, it cannot be rented or leased out for at least one year after closing. Without taking occupancy, purchasers are not eligible for the HST rebate, and Canada Revenue Agency will likely demand a repay of the entire HST rebate (often substantial). This eligibility problem also results when a condo property is sold, prior to one year, and without moving in. In some cases, when the property is sold quite quickly, CRA might challenge the owner on that basis, and there’s a risk of being disqualified for the HST rebate. However, when there are specific or unique circumstances, a purchaser should be well prepared to appeal the decision. A condo buyer who takes title with a close relative (spouse, parent, sibling) in order to secure a mortgage qualifies for an HST rebate. This is not the case for other relatives, friends, or business contacts that sign on title. Indeed, condo buyers who received a rebate, and subsequently failed to qualify, will inevitably receive a CRA request to pay back the entire amount of the HST rebate. There is good news for condo buyers who want to rent or lease their property without moving in. Here, CRA offers an HST rebate program designed for landlords. This could be a somewhat more complicated process, primarily because a condo builder may be involved, as well as a real estate agent. This is where a reliable rebate specialist would be an advantage with the application. Today, with so much activity in the real estate environment, many people are trying to get in on the action – committing to a small down payment, waiting for their property to be built, and fully intending to rent out the property, or “flip it” in order to capitalize on the accrued value. Once again, a good rebate specialist can help keep things on track, ensuring satisfaction for CRA. Whatever the property circumstances, dealing with CRA and steering around a rebate application can be stressful. However, with a reliable rebate specialist, many of the challenges are reduced. HST rebate specialists have an in-depth understanding of tax law. And because they deal with CRA on a regular basis, they understand the ins and outs of HST applications. A reputable rebate specialist will handle an application from start to finish, addressing all of the preconditions, and without making costly mistakes that could jeopardize a rebate.

More of our Blogs

Newly built homes

21 June 2024

Benefits of Building Your Home with the HST Rebate in Ontario

Buying a new home in Ontario is a significant investment and a challenging process in the region’s competitive real estate market. As a result, many prospective home buyers look to buying land or properties that need large-scale renovations instead of buying directly from a builder or a ready-to-live-in, listed property. Understanding the financial benefits of building your own home with the...

View Full Post

HST housing rebate

11 June 2024

Frequently Asked Questions About the HST Rebate in Ontario in 2024

The new housing rebate is a fruitful opportunity for residential property owners and buyers across Ontario who fit the eligibility criteria. The HST Rebate in Ontario is applied to newly built or renovated homes and when applicable, can result in tens of thousands of dollars back into the pocket of the home buyers. When approaching the application process for the HST rebate on new homes or newly...

View Full Post

Renovations

29 May 2024

Misconceptions to Avoid with HST Rebate on New Homes in Ontario

Residential property owners in Ontario looking to get money back that they've invested into their home have the opportunity to apply to the HST Rebate in Ontario. Designed to help lessen the cost of residential property ownership for your primary residence. This program has been available for many years and gives successful applicants a significant portion of their HST costs back.

View Full Post

HST housing rebate

17 May 2024

Why Avoid Late Filings for the New Home HST Rebate

For all your questions and application help, contact us today.

View Full Post

HST housing rebate

30 April 2024

What to Do When You've Been Contacted By the CRA for Your HST Rebate

Being thorough, accurate, and honest in your application is essential for a successful HST rebate claim. To ensure that it is accurate, contact Rebate4U. Our team has successfully secured millions of dollars in rebates for our clients, for over a decade.

View Full Post

Renovations

15 April 2024

How to Cash in on Your Spring Renovations with the Ontario Rebate Program

Learn more about how you can cash in on your spring renovations with the Ontario rebate program!

View Full Post

Renovations

26 March 2024

Tips to Ensure Your Renovation is Substantial Enough for the HST Rebate on New Homes

The Harmonized Sales Tax (HST) Rebate on home renovations is a significant financial incentive for homeowners in Ontario, providing a golden opportunity to recoup a portion of the expenses involved in upgrading and enhancing their living spaces. This rebate is offered via Canada Revenue Agency, and it aims to encourage property owners to invest in their homes, not just for personal satisfaction...

View Full Post

Renting

13 March 2024

How to Claim the HST Rebate on Rental Properties

The HST rebate on rental properties or the New Residential Rental Property Rebate is an excellent opportunity for new condos and homeowners who are not planning on occupying the property to get some money back that was invested in the purchase of the new home. Choosing to rent a property is an effective secondary passive income. When paired with the HST Rebate in Ontario, a rental property can be...

View Full Post

Renting

26 February 2024

How to Find a Tenant Ahead of Your HST Rental Rebate Application

If you’re renting out a new residential property, the HST Rebate in Ontario is a great opportunity to get back some of the money you’ve invested into purchasing the condo. Available via Canada Revenue Agency, the New Residential Rental Rebate Program can mean thousands of dollars back. To qualify for this rebate program in Ontario, you must meet the criteria set out by Canada Revenue...

View Full Post

Renovations

10 February 2024

3 Stand-Out Benefits of Applying for HST Rebate on Home Renovations

Home renovations are a great way to revitalize your existing property to transform it into your dream home. Working with the best contractors you can make large-scale upgrade plans that rebuild your home from the ground up. With programs like the New Home HST Rebate in Ontario, the cost of these significant upgrades can be mitigated. By working with the experts at Rebate4U you can assess your...

View Full Post