Homeownership is an exciting thing. When you save enough funds for a down payment, secure a mortgage, and finally get your hands on the keys to your very own house, you need to know that the expenses don’t stop there. Homeownership comes with a slew of recurring charges, such as utility bills, home insurance, property taxes, and so on. To help ease the financial burden, the government has announced the new housing rebate Canada that allows an individual to recover a part of the HST paid for the new house. Let us review the eligibility conditions to claim the rebate if you bought a house in 2020.
What Is The New Housing Rebate?
There are some real challenges to buying a home right now. But it might be the best time to buy a house. House owners who purchase a newly constructed home from a builder directly or anyone who employs a construction contractor to design a new home are eligible for the new housing rebate. The government implemented this rebate to minimize the high cost of homeownership and its additional financial demands. The tax rebate principle is to reimburse a part of the HST already paid by the property buyer to reduce the financial pressure on first-time home buyers.
Who Is Eligible To Apply?
Applicants must meet certain requirements to qualify for the rebate. Applications that do not entirely satisfy the minimum criteria may be ineligible for consideration. Purchase of a newly constructed house or condominium is eligible. You can apply even if you’ve employed the services of a contractor to construct your house. If you’re already living in your primary residence and did a significant renovation or an extension to your house, you can also apply for the new housing rebate. As an alternative to traditional buying, if you want to invest in a housing co-operative and if the co-op has already paid taxes, your share is eligible for a housing rebate when filing the returns.
What Is The Timeline For Applying?
The filing date for the new housing rebate varies depending on your situation. You must claim your refund within two years of the sale or renovation. If you pay the tax before filing for the rebate, you can claim the tax paid on the land acquisition fees, building costs, and interests. If you want to claim before the house is occupied, you should have performed an exempt sale and transferred the primary residence ownership. You can apply for the refund after you have moved into your new or recently built house, as long as you or your family members are the first to do so. You can also apply for the rebate before major construction and renovation are complete. While late rebate requests are usually not accepted, certain special cases can warrant a late application and deserve consideration. If the new home or condo is your primary residence, talk to your tax professional to prepare and submit your rebate application according to CRA deadlines.