If you are a resident in Ontario who has recently purchased or substantially renovated a new home, we’ve got great news for you! You might be eligible to get a generous cashback through the GST/HST new housing rebate program tailored to your province. How? You may ask.  

Don’t worry, if you’re unfamiliar with this rebate program and want to find out if you qualify, grab a cup of coffee, sit back and let’s guide you through the process. 

 

What is the Ontario GST/HST New Housing Rebate? 

The GST/HST new housing rebate is a program for residents in Ontario. It provides cashback to eligible individuals. They receive the cashback when they buy or renovate new housing for their main home. This rebate is in addition to the federal GST/HST new housing rebate which aims to assist you with the substantial tax costs associated with buying / building a new home or renovating an existing one. 

 

Eligibility for the Ontario New Housing Rebate 

Who qualifies for the gst hst credit? To know if you are qualified for the Ontario GST/HST New Housing Rebate, you must meet the following criteria for the type of housing you purchased or substantially renovated:

 

Houses Purchased from a Builder: 

 

• • You can get a GST/HST rebate in Ontario if you buy or renovate a house, mobile home, or floating home. So, if you have any of these houses, you are qualified.  

• • Whichever housing you intend on getting this rebate for must be for your (or your relation’s) primary place of residence. 

• • If you rent a land, you must lease it for at least 20 years or have the option to buy it. This requirement is in place to ensure that the property is treated as a long-term residence, reflecting a commitment like homeownership. 
  •  

Owner-Built Houses: 

 

• • If you built or hired someone else to construct or substantially renovate your home, you are eligible for the GST/HST new housing rebate. 

• • The house’s fair market value should be less than $450,000 when construction is substantially completed. This is because the program aims to target individuals and families who are purchasing more affordable housing, and it ensures that the benefit is directed toward those who may need financial assistance the most. 
  •  

Applying for the Ontario Rebate 

If you meet the eligibility criteria for the Ontario GST/HST New Housing Rebate, here are some ways you can apply using the appropriate forms: 

Houses Purchased from a Builder: 

 

• • The first step to recover the provincial part of the HST, is to fill out this form RC7190 ON.  

• • You can file for a rebate application online using My Business Account to represent a client, or GST/HST NETFILE (for types 1A and 1B) and My Account for Individuals (for types 2, 3, and 5). 
  •  

Owner-Built Houses: 

 

• • To recover the provincial part of the HST, fill out Form RC7191 ON. 

• • File your rebate application online using My Account for Individuals. 
  •  

Important Notes and Documentation for Ontario Residents 

 

1. 1. If you are eligible for the Ontario GST/HST New Housing Rebate, you can claim it (up to the applicable maximum of $24,000) regardless of the fair market value of the housing, if all other conditions for claiming the rebate are met. 

 

1. 1. In most cases, you do not need to send supporting documents with your rebate application. However, retain all original invoices and documents used to fill out the forms for at least six years in case the CRA (Canada Revenue Agency) requests to see them. 

 

1. 1. The CRA only accepts original invoices in the claimant’s or co-owner’s name and does not accept photocopies, credit cards or Interact slips, account statements, estimates, or quotes as proof. 
   2.  

The Bottom Line 

As an Ontario resident, the Ontario GST/HST New Housing Rebate is an excellent opportunity to recover a portion of the taxes paid on your new home. By understanding and following the eligibility criteria and application process, you can receive a significant rebate on your housing purchase or substantial renovation. 

To learn more about claiming the Ontario rebate, read Guide RC4028. The Canada Revenue Agency (CRA) also provides this guide titled GST/HST New Housing Rebate which would be helpful as well. You can also contact us at Hombek for more information as well.

Remember to keep all the necessary documentation handy and apply for the rebate within the specified time frame. Happy rebate claiming!