Beyond Bending Tell You How
The cost of buying a new home in Ontario can be quite high, and this is one of the reasons why the Government of Ontario introduced the Ontario New Housing Rebate. This rebate is intended to help homebuyers offset the cost of purchasing a new home and make it more affordable. In this blog post, we will provide a detailed guide on the Ontario New Housing Rebate, including eligibility requirements, how to apply, and what you can expect to receive.
But before we dive into the specifics of the rebate, it’s important to understand what it is and how it works. The Ontario New Housing Rebate is a refund of the provincial part of the HST (Harmonized Sales Tax) paid on a new home purchase. The rebate is available to individuals who buy a new home or have a home built for them, and it is intended to offset the high cost of buying a new home in Ontario.
Eligibility Requirements
Before you can apply for the Ontario New Housing Rebate, you must meet certain eligibility requirements. These requirements include:
- You must be at least 18 years old
- You must be a Canadian citizen or permanent resident
- You must have purchased or built a new home in Ontario
- You must have paid the HST on the purchase or construction of your new home
- You must have intended to use the home as your primary place of residence
If you meet all of these eligibility requirements, you may be eligible to receive the Ontario New Housing Rebate. However, there are certain circumstances where you may not be eligible, and we will discuss those in the next section.
Exceptions to Eligibility
While most homebuyers in Ontario will be eligible for the Ontario New Housing Rebate, there are some exceptions to eligibility. These exceptions include:
- You purchased a home that was previously occupied for any length of time
- You purchased a home that was previously rented out by the builder
- You purchased a home that is not your primary place of residence
- You purchased a home from a builder who is not registered for the HST
If any of these exceptions apply to you, you may not be eligible for the Ontario New Housing Rebate. However, it’s always a good idea to consult with a tax professional to confirm your eligibility.
How to Apply for the Ontario New Housing Rebate
If you are eligible for the Ontario New Housing Rebate, you can apply for it by completing the appropriate forms and submitting them to the Canada Revenue Agency (CRA). The forms you need to complete will depend on whether you purchased a newly constructed home or had a home built for you.
If you purchased a newly constructed home, you will need to complete Form GST190, Ontario Rebate Schedule. This form is available on the CRA website and must be completed and submitted within two years of the purchase of your new home.
If you had a home built for you, you will need to complete Form GST191, New Housing Rebate Application for Owner-Built Houses. This form is also available on the CRA website and must be completed and submitted within two years of the completion of your home.
What You Can Expect to Receive
The amount of the Ontario New Housing Rebate you will receive depends on several factors, including the purchase price of your new home and the amount of HST you paid. The maximum rebate available is $30,000, and this is only available to homebuyers who purchased a home with a purchase price of $450,000 or more.
If the purchase price of your new home is less than $450,000, the rebate amount will be calculated as a percentage of the HST paid. The rebate is calculated as follows:
| Purchase Price of Home | Maximum Rebate Amount |
|---|---|
| $350,000 or less | $4,000 |
| $350,000 – $450,000 | Between $4,000 and $30,000 |
| $450,000 or more | $30,000 |
It’s important to note that the Ontario New Housing Rebate is only available for the provincial portion of the HST. The federal portion of the HST is not eligible for a rebate.
Important Notes
When it comes to applying for the Ontario New Housing Rebate, there are a few important notes to keep in mind:
- The rebate is only available for newly constructed homes or homes that have been extensively renovated
- The rebate is only available if the home is your primary place of residence
- The rebate is only available for the provincial portion of the HST
- The rebate is only available if the builder is registered for the HST
It’s important to keep these notes in mind when considering whether or not you are eligible for the Ontario New Housing Rebate.
Conclusion
The Ontario New Housing Rebate is a valuable tool for homebuyers in Ontario who are looking to offset the cost of buying a new home. By understanding the eligibility requirements, how to apply, and what you can expect to receive, you can take advantage of this rebate and make your new home more affordable.
People Also Ask
How long does it take to receive the Ontario New Housing Rebate?
It typically takes between four and eight weeks to receive the Ontario New Housing Rebate once your application has been submitted to the CRA.
Can I apply for the Ontario New Housing Rebate if I purchased a pre-construction home?
Yes, you can apply for the Ontario New Housing Rebate if you purchased a pre-construction home. However, you must have paid the HST on the purchase of your new home to be eligible for the rebate.
Can I claim the Ontario New Housing Rebate if I am not a Canadian citizen?
You must be a Canadian citizen or permanent resident to be eligible for the Ontario New Housing Rebate.
Is the Ontario New Housing Rebate available for second homes or investment properties?
No, the Ontario New Housing Rebate is only available for homes that are intended to be used as a primary place of residence.
