Everything you need to know about new housing rebate in Canada

If you plan to invest in a new house in the near future, then you might have heard of the new housing rebate. You can get this tax rebate even if you purchase a new space as your primary residence, or as an investment property, because the regulations allow you. The HST rebate was introduced around 2010, and it was designed with the purpose to offer buyers a discount of the sum they spend to purchase for the first time a real estate which would be used as an investment property or a newly constructed house or condo, which would be used as a principal residence. It is important to have all the info before applying for a new housing rebate in Canada, because if you do not meet one of the requirements you would waste your time for nothing.

Conditions to meet

It is essential for the property you buy to be a condo or a single-unit residential complex if you want to apply for the tax rebate. Also, you have to purchase the property or land from a builder, and make sure that the constructor or anyone else has not applied for the rebate by their own. The property you purchase has to be your primary residence, or the residence of one of your family members. The house or condo has to be first occupied by you or one of your relatives once the building process is complete.

Work with experts

Because this is the first time you are buying a property as your principal residence or as your investment condo, you should ask for the help of an expert in this domain, because there are a lot of regulations you have to consider when applying for a rebate. Also, the rules change once in a while, and it is important to know them all, when you apply for a rebate, to not waste your time. If you do not know what the tax rebate application implies you would spend a lot of time in trying to figure it out, and you have to be aware that you have only 2 years from the moment when you become the owner of the property to apply for it.

How is the rebate calculated?

If you are interested in a GST rebate, then you should know that it would be calculated at 36% from the sum you have paid for the property. In case you invest in a condo it would not be higher than $450.000. In case you buy a condo which is listed at a price higher than $450.000, then you would not be able to apply for a rebate. If you want to apply for a QST rebate then you should know that you might get up of 50% from the sum you paid for the property. If the house you invest in is more expensive than $300.000, you would not be eligible to apply for the provincial tax rebate. A professional would be able to offer you more info about it, so make sure to contact one in time.