People who are willing to buy a preconstruction condo are confused whether they need to pay HST or not. This article will give them better insights about the ins and outs of the HST rebate in Canada when they are going to buy a new condos in Vaughan. The advice given in this article is for new homebuyers. It is imperative at their part to consult an expert regarding the HST rebate.
Understanding the HST rebate
Condominium seekers who are buying new condos in Vaughan can benefit for from the HST rebate even the home owners can o benefit who are renovating their property drastically. Here is a list of people who can receive the HST rebate.
- Investors or end users buying a preconstruction condominium
- Homebuyers who are purchasing a new residential unit, which nobody has used earlier for living purpose
- People who have renovated their property can apply for this rebate. If you are giving your property head-to-toe transformation, then you are eligible to get HST rebate
- People who are building a new home for themselves
Key facts to remember
- Remember in case of a new homebuyer or a blood relative he is supposed to occupy the home within 12 months.
- If the buyer is selling the property in the first year itself, then he is supposed to pay the HST rebate back.
- In case you are leasing your home in the first year and you have to pay the HST and you can be eligible by filing a new residential rental property rebate. You need to contact an expert to understand the technical details.
- New homebuyers, who are direct blood relatives, can occupy the new property as their main residence. Children, parents and spouses, siblings or common partners are considered direct blood relatives whereas cousins and uncles are not.
Whether you are a Canadian national or a foreign investor, you are entitled to receive the HST rebate on the purchase of a new condominium. You need to apply for the new residential rental property rebate (NRRPR). In order to receive the HST rebate under this law, you are supposed to provide one-year lease agreement. This is to prove that you are going to rent your new home to a tenant. You need to lease your new home in the first year. In case before the end of first year, the investor flips the property, then he is no longer eligible to get the rebate.