GST/HST New Housing Rebates – Amount, Eligibility, How to apply?

The Canadian government offers housing rebates on the Goods and Services Tax/ Harmonized Sales tax that you paid to build the house or when you renovate the house. Now, many must be wondering how much would they get as a refund or who can apply for these rebates.

GST/HST New Housing Rebates

Under this rebate program, you can get rebates on GST/HST you paid for the new or renovated the new house or an existing house that is going to be your main residence.

When you build a house or renovate an existing house or a new house you brought you pay GST and HST in this whole process.  

So, the Canadian Federal government aims to give the money back to you in the form of a rebate that you have spent on GST or HST during the new house purchase or the heavy renovations you are doing in the house that will be your main residence in Canada. 

The main purpose of this program is to boost the affordability of houses in Canada. 

New Housing Rebate Amount 

The new housing rebate that the qualifying individual will get is around 36% of GST/ HST he/ she paid on the newly built house. Individuals can get around $6,300 rebate under this rebate program. 

If you have bought a house with a market value of less than $350,00 or less then also you can get a partial rebate. 

How does the individual qualify for the new housing rebate?

You will be qualified to claim the new housing rebate if you have:

Owner-built Houses:

GST/HST New Housing Rebates

  • Converted a non-residential property into a house.
  • Built  or engaged someone to build a house on land that you already owned
  • Renovated or doing some major changes in your existing house and paid GST/HST along the way of renovating the house or building the house.
  • Purchased a new or almost renovated mobile home, or floating house.
  • You are the first person to occupy or go to live in the house or when you made an exempt sale of the house and transferred ownership before it was occupied by anyone.
  • If the home is going to be your primary residence, then you can get a rebate on substantial renovation, where at least 90% of the house is under renovation.
  • The rebate is also available for floating homes, and mobile homes that you will be using as primary residences. The rebate is not available for corporate space and partnerships.
  • You can qualify for the rebate if the fair market value of the house is less than $450,000 at the time the work of your house is almost complete.

House Purchase from a Builder:

  • Purchased a house from a builder registered in GST/HST New housing rebate.
  • Purchased a new house or substantially renovated the mobile home or flotation home.
  • You purchase a capital stock of cooperative housing.
  • You purchase a new house or an almost completed renovated house from a builder where you have the lease of land for 20 years under the same agreement you bought the house.

How to apply for New housing rebates?

To claim your rebates, first, you have to fill out the form GST191-WS, Construction Summary Worksheet to know how much you have paid the GST/ HST.

For owner-built houses, you have to fill the Form GST191, GST/ HST New Housing Rebate Application. And if you are claiming a provisional rebate, then there are forms according to the provision.

Now to claim your rebate you have to send your form to the government website over 2 years after the construction of the house.

Documents required:

  • Your sales contract.
  • Settlement statement,
  • Your details

If you have bought the home from a builder then your builder can apply on your behalf for the rebate.

After you send the form, CRA will review your form and the documents. The CRA will send you a notification if your application will be approved for the rebate.

The rebate program for new housing is a great initiative to provide great relief for building a home that needs a lot of money and savings. This initiative has made it easy for Canadian citizens to have their own homes.

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