New HST Housing Rebate
The provincial & federal governments will combine the 7% PST and the 5% GST into a 12% HST on July 1, 2010. As a rule of thumb, the GST rules that now apply to residentail property will also apply under the HST.
New Housing Rebate
-a new home together with land;
-a new mobile home with leased land;
-a new mobile home or float home;
-a new home purchased through shares in a housing cooperative; or
-a home constructed or substantially renovated (more than 90%) by the owner-builder.
Buyers of new homes will be eligible for a rebate of 71.43% of the provincial portion (7% of the HST's 12%) of the HST paid on the new home up to a maximum rebate of $26,250. Homes priced at more than $525,000 will be eligible for a flat rebate of $26,250.
*The federal GST New Housing Rebate is 36% of the tax paid on the first $350,000 of the home price. The GST rebate is phased out for homes priced between $350k & 450K.
Note: the Provincial New Housing Rebate is limited to primary residences. Recreational property not used as a primary residence does not qualify.
