Here are the answers to your Condo HST Rebate questions
The HST Rebate program has been around for quite some time now, being introduced in the middle of 2010 in Ontario. There is a popular misconception that the deduction applies exclusively to people who are purchasing a property for investment purposes, but the truth is that the refund applies mostly to home buyers. The rebate represents a discount that is given to first time buyers as long as certain conditions are met. If you are considering to invest in a preconstruction condo in Toronto, then you should clearly understand all the issues involved in the purchase of a condominium. Although you can do some research on the Internet, you can visit http://www.rebate4u.ca/ for more details or read this article. The main purpose of this present article is to answer Condo HST Rebate questions that you may have.
Is the HST rebate included in the price of the home?
The fact is that HST rebate is built directly into the price of every condominium sold in Toronto. The buyer, which means the end user, is require to pay a full tax on the closing of the deal and claim the refund later on. This basically means that you pay the HST on commission for real estate. The deduction will allow you to recover some of the money you have invested in the purchase of a new home. In order to qualify for the discount you must purchase the house from a builder and he is the one person that is entitled to collect the discount. The good news is that if you purchase a home in Ontario, then you are also entitled to a provincial new housing rebate.
How much can I get back?
If you do qualify for the discount, then you can expect to receive up to $6,300 for a property that is worth $350,000. However, if the value of the condominium exceeds $450,000 or more after the property has been renovated, then you are entitled to nothing. You should also take into consideration the Provincial Sales Tax, which is a credit of 75% of the sum paid. As long as you buy a property that is worth over $400,000 you are likely to qualify for 75% of the 8% of the provincial tax you have paid. The maximum deduction that you can hope to obtain is $26, 250. Homes up to $525,000 do not see any significant change.
Do I qualify for the rebate?
The basic assumption is that the buyer of a new condo is also the end-user, which means that you are buying the condo for your personal use and not to rent it to a tenant. Basically the house must be your primary place of residence. If you purchase the condominium together with someone from your family, you are also eligible for the discount. However, attention should be paid to the fact that cousins or nephews do not qualify as blood relations and you may be required to pay back the federal discount. Equally important is that you should be a resident of Canada at least for one month prior to the refund.