How to ensure you get your HST Rental Rebate back from CRA

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Real estate investors are increasingly more aware of how the HST Rebate works and of the variety of tax implications of purchasing a new build investment property in Ontario. However, unless you are in the industry and have extensive experience with closing new build properties, you may be walking into a situation that risks up to $30,000 of your hard earned investment.
It’s important to speak to our experts about the many possible scenarios that can potentially exclude you from eligibility for the HST Rebate. Don’t put yourself into a situation that may cause you to forfeit your $20,000 - $30,000 rebate! Call us for details if any of the following circumstances apply to your new build investment:
  • You have purchased the new construction home or condo on assignment
  • There are multiple family members or investors on title
  • You plan to sell the new built house, townhouse or condo within a short time after it closes
  • You plan to tell the builder you are using the new property as your primary residence when you are not
  • You are renting your new property on short term leases or through online rental services such as AirBnB
  • You plan to use the new build as a second home, vacation home or office space
There are many loopholes that CRA uses to forfeit an investor’s right to the HST Rebate. Investors must fully understand these implications as early as possible – call us for our free consultation. Conversely, there are also many Ontarians who are unaware of their eligibility for the HST rebate. Did you know that foreign investors are in fact eligible for the HST rebate? To qualify for the rebate, there is no requirement to be a citizen, reside in Canada nor have a SIN number. Call HST Relief for more information on how we can reclaim your HST. For more online reading, check out our clients’ FAQs with our team’s detailed answers posted here.

Claiming the HST on a new build home

How do I know if I have to pay HST on my real estate transaction?  And, how to I claim the HST back through a government rebate for HST?


By HST Relief (Admin)
Yes, in short it works like this:
HST only applies to new construction purchases, not resale real estate transactions.  If you bought a new construction condo, townhouse or home from a builder then there is HST on your transaction.  Part of the HST is built into the purchase price (thte non-rebateable portion) and part is due on closing.  These exact amounts depend on the purchase price of the real estate you bought for. 
If you are using the new construction property as an investment property, then there is no additional HST due on closing.  The HST Rebate is applied at the time of the sale (where essentially the builder is responsible for the HST rebate and the Purchase Agreement outlines that you, as the purchaser, have assigned over the right for the rebate to be issued back to the builder from CRA).  But, if you are not moving into your new construction investment, then a portion of HST is due on closing and ranges from $17,000 - $29,000 depending on what the purchase price is.  In this case, the purchaser is responsible to file for the government CRA rebate themselves to reclaim the HST.
Our team of HST Rebate experts specializes in these filings.  Call us and we'll put together your HST Rebate filing and get your money back.  We also offer loan financing for HST if you need hep with this large closing cost.  1.866.832.1990

Do I file for my HST Rebate when I file my taxes?

For the HST rebate on my new condo, do I have to wait until the end of the year to file my taxes like I do for income taxes?


By HST Relief (Admin)
No, you can file for your HST rebate the day after you close on your new construction property, pending you are eligible.  For example, you must have a lease in place with a tenant in order to apply through the rental rebate program.  Give us a call to put together your HST rebate application and to submit to CRA as soon as possible. 1.866.832.1990

First Canadian Place • 100 King Street West • Suite 5700 • Toronto, ON • M5X 1C7

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