Paying the goods and services tax (GST) on stuff we buy is just a fact of life for us Canadians. And, if you’re purchasing a newly built home, you’ll need to pay GST on top of the purchase price just like almost everything else you buy.
But did you know you might be eligible for a rebate on some of the GST?
The New Housing Rebate (NHR) allows a home-buyer to recover some of the GST paid on a brand new condo, as long as you intend to use it as your primary residence (or if a family member will live there).
The full rebate applies to new homes priced at $350,000 or less – but even if you’re buying a place priced up to $450,000, there’s still a partial rebate you can claim.
How do you calculate the GST New Housing Rebate, you ask? If your new home is in Alberta where we don’t have PST/HST, the rebate is calculated as 36% of the GST on properties valued $350,000 or less – which means you only have to pay 3.2% tax instead of the full 5%.
For properties valued between $350,000 and $450,000, the partial rebate is calculated on a sliding scale – so you’ll pay somewhere between 3.2% and 5%.
(Sorry, there is no GST rebate available if your new place is priced at more than $450,000)
So, how do you get your hard-earned money back? Well, there’s a tax form you’ll need to complete and submit along with your personal income taxes – and it has to be completed within two years of your closing date.
However, when you buy with Battistella, we take the hassle out of submitting your own claim. We calculate the rebate at the time of your purchase, you pay only the net GST, and we take care of the rest. It couldn’t be easier!