The below information is to help you understand what is and is NOT deemed “rebates” in the housing market:
Rebates for new housing:
The GST/HST new housing rebate allows an individual to recover some of the GST or the federal part of the HST paid for a new or substantially renovated house that is for use as the individual’s, or their relation’s, primary place of residence, when all of the other conditions are met.
The new housing rebate is ONLY available to individuals who meet all of the conditions for claiming the rebate. However, it is not available to an individual if the individual co-owns the housing with another person who is not an individual. The new housing rebate is not available to a corporation or a partnership.
You may be entitled to claim a GST/HST new housing rebate for an owner-built house if you:
- You built or hired someone else to build, a house on land that you already owned or leased
- You substantially renovated or hired someone else to substantially renovate your existing house (at least 90% of the interior of your existing house must be removed or replaced to be a substantial renovation)
- You renovated or hired someone else to renovate your existing house and built or hired someone else to build a major addition to your house, to the extent that this is viewed as a newly built house (for example, the addition of a full second story to an existing bungalow). Adding a sun porch, sun room, family room, or bedroom by itself is not a major addition
- You converted a non-residential property into your house
- You purchased a new or substantially renovated mobile home or a new floating home from a builder of said home (this includes the manufacturer or vendor of the home) or you or someone you hired substantially renovated such a home
- For a mobile or a floating home, you can claim either the owner-built new housing rebate or the new housing rebate for a house purchased from a builder, mentioned below.
Houses purchased from a builder:
You may be entitled to claim a GST/HST new housing rebate for a house purchased from a builder if one of the following apply:
- You purchased a new or substantially renovated house (building and land) from a builder
- You purchased a new or substantially renovated mobile home or a new floating home from a builder (this includes the manufacturer or vendor)
- You purchased a share of the capital stock of a co-operative housing corporation (co-op) where the co-op has paid tax in respect of a new or substantially renovated house
- You purchased a new or substantially renovated house from a builder where you leased the land from that builder under the same agreement to buy the house and the lease is for 20 years or more or gives you the option to buy the land
If you paid the HST to buy, build, or substantially renovate a house located in Ontario you may be entitled to claim a provincial new housing rebate for some of the provincial part of the HST that you paid. For more information, see Ontario new housing rebate for owner-built houses or Onta