Receive a $30,000 Rebate if You Purchase a New Construction Home, Townhouse or Condo

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Have you bought a new construction property as an investment?  A new condo, townhome or house from a builder? If so, the CRA’s New Residential Rental Program Rebate is meant for investors like you to reclaim thousands that you have paid on final closing. Ultimately, this CRA program is designed to ensure you pay the same price for a new construction property as owner occupied purchasers do but reimbursing you the portion of the HST that is due for investors on final closing. There is much misinformation out there, so do not be misled on the HST Rebate works or on your eligibility. Investors are eligible for HST Rebates even if they have paid well over a million dollars for their preconstruction investment properties - the rebate merely maxes out at 24,000 and this only is paid from the Provincial government (the Federal rebate will be zero).  Unfortunatey, many investors read incorrect content online and believe that for expensive new construction properties there is no HST rebate.  This is not the case. 
 
Are you thinking of purchasing a new house, townhouse, duplex or condo from a developer? Our advice is to take some time ahead of closing to understand how the new HST rebate rules will affect the purchase price of your new property. HST Relief: Rebates & Loans is here to answer questions in advance of your purchase so that you do not put yourself out of thousands of dollars or trigger an audit from CRA. Plan your real estate investment strategy ahead and feel confident investing when you are aware of the rebate filing and loan services that we offer.
 
HST Relief: Rebates & Loans is a company based in the financial district of Toronto that specializes in advising clients how to successfully close preconstruction properties and get their HST back. We provide free consultation and offer HST rebate filing services and issue HST loans. Our goal is to help investors to continue to yield return in the preconstruction market while staying in CRA’s good books. Call us today at: 1.866.832.1990
 
Have you already purchased a new property from a builder as an investment? What is the difference in how HST is applied to real estate on primary residences versus investments? Firstly, there is no HST charged on resale condos. These issues apply only to substantially renovated primary residences and to new construction houses, townhouses and condos.
 
The key difference between preconstructions units that are purchased as primary residences and those that are purchased as investments is that the investor must pay the HST on closing and apply for the rebate themselves. There are important eligibility requirements to understand before closing. In the case of the investor, one must have the cash upfront ($16,000 - $29,000) to pay on closing and this amount is reclaimed through the rebate filing. The issue here is that the investor must have the means to finance that amount paid for a period of 4 weeks to 6 months or longer, depending how well the HST Rebate application is received by CRA. This is precisely why you should speak to an expert prior to closing. There is a 74 page manual issued by CRA – call us instead. In addition to our HST rebate filing service, HST Relief also offers loans to finance the HST amount due on closing until we reclaim your HST.  For more information on what you should know about closing a new construction real estate investment, check out our clients’ FAQs with our team’s detailed answers posted here.

What is HST on new builds?

My question is exactly that - what is HST on new builds?

Answers

By HST Relief (Admin)
In July 2010, when the Ontario government introduced HST, the tax started being applied to new construction real estate.  The bottom line is this - if you purchase new construction as an investment, you will owe more money than what you signed on the Purchase Agreement.  If you are using the new construction investment as a primary residence, you will not owe any additional tax on closing.
 
Call us for an estimate on the amount of HST you will owe on closing of your new construction investment property.  1.866.832.1990.  info@hstrelief.ca
 
   

How many HST rebates can I get from CRA?

Say I were to buy 3 investment properties and they all closed within a short time of each other, is there a limited number of HST rebates I can apply for through CRA?

Answers

By HST Relief (Admin)
Hi Leslie,
 
If you qualify for the HST Rebate (e.g., you have a 1 year lease for the new residential rental rebate program), then you can get your HST rebate back for every investment condo or preconstruction home you purchase.  There is no limit n the number of times you can file for the rebate.

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