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How the HST Rebate Applies to New Condo Owners in Toronto

Date Posted
15 June 2017
For new condoownersin Toronto, or for those about to purchase, it’s important to understand some of the unique elements of the HST rebate. Needless to say, there’s a lot to think about when purchasing a new condo. But with a sizeable HSTrebate available, it’s worthwhile to understand the eligibility requirements. When certain pre-conditions are satisfied, and the right paperwork submitted, an HSTrebate can make a big difference for new condoownersin Toronto.The HST tax structure encompasses most purchases in Ontario. As a blended tax, the HST (a total of 13%) combines the Federal GST tax of 5%, and the Ontario PST tax of 8%. HST taxes apply to specific real estate transactions, including new condoownersin Toronto. If the purchased condo were not sold before 12 months of ownership, the HST rebate would apply. However, as with any other government program, there are rules and regulations for complete eligibility. When purchasing a new condo or house, there is such a thing as the New Home Rebate. Under the NHR, new condoownersin Toronto could be eligible for an HST rebate when occupying the premises as a principal resident for at least the first year. In most purchase situations, the New Home Rebate will be claimed directly by the real estate developer. This is done on behalf of the purchaser, who in turn receives their “rebate” in the form of a reduced “sale price”. With regard to pre-construction condo purchases, sale prices already have the HST Rebate factored into the deal. For those receiving an HST rebate as the end-user, it’s essential to show that the new home is a principal residence. This means changing all personal identification to reflect the new home address (driver’s license, health card, etc.). If there is any suspicion about primary residency, the HST rebate may need to be paid back when the deal closes. In order to remain eligible for an HST rebate, a purchaser must continue to residein the condo for the first year at a minimum. Importantly, a condo buyer can still receive the HST rebate if an immediate family relativelives in the property.Immediate relatives are defined as parents, grandparents, wives or husbands. Also important is that property co-signersmust live in the condo as principal residents. Here, any inconsistencies could risk the HST rebate. What’s absolutely critical with HST rebates is to prepare all of the paperwork properly, and submit applications by the specified deadline dates. For those who find the process somewhat complicated and slightly stressful, it may a good idea to work with a real estate rebate expert. Here, the experts at Rebate4U can streamline the process, covering all of the bases, and meeting all of the deadlines. Rebate4U provides personal and attentive service every time. To find out more about HST rebates and eligibilities, contact Rebate4U toll-free at 1-800-610-4510 (or call locally at 416-783-6969). More information is also available on the company website www.rebate4u.ca .
How the HST Rebate Applies to New Condo Owners in Toronto

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