HST Housing Rebates

Purchasers of pre-construction houses and condos can qualify for two types of rebates: the rental property rebate, and the owner-occupant rebate.

The actual names for these rebates are more technical (New Residential Rental Property Rebate, and New Housing Rebate).

HST Rental Property Rebate

There are several basic criteria for the HST Rental Property Rebate, including: renting out the property to a tenant for a minimum one-year term, and being the identified purchaser on the Agreement of Purchase and Sale.

The HST Rental Property Rebate is never credited to the purchaser by the builder on final closing.

HST Owner-Occupant Rebate

There are several basic criteria for the HST Owner-Occupant Rebate, including: the owner or a relation must be the first individual to occupy the property, and the owner or a relation must have intended to reside in the unit at the time the property was purchased. Please note that a relation is a specifically defined term that is limited to certain family members.

The Owner-Occupant Rebate may be credited to a purchaser on final closing, however, most builders have a clause in their Agreement of Purchase and Sale that provides them with the discretion as to whether they will credit a purchaser with this rebate on the final closing of the property.

Conclusion

Complications with HST rebates can arise in the following situations: assignment purchases of properties, some properties which have experienced rapid increases in Fair Market Value from the original purchase price, and situations where purchasers receive the HST Owner-Occupant Rebate when they do not qualify for this rebate.

If you need to apply for an HST housing rebate, or if you are facing an audit of an HST housing rebate, we are available to assist.