Ontario’s New Residential Rental HST Rebate
If you are purchasing a new build home from a developer as an investment/rental property, you could be eligible for up to $30,000. Learn more and calculate how much you could get back below.
Even as the market cools off, new home construction is still skyrocketing in Ontario. StatsCan reported that there were over 100,000 new house starts and 13,000 rental starts in the province in 2021 and despite the supply chain and labour issues that remain on this end of the pandemic, those numbers are showing little sign of slowing for 2022.
With this in mind I thought now would be a great time to discuss the New Residential Rental HST Rebate program that is available for new developments purchased as investments in Ontario. Similar to the HST rebate program available to buyers who purchase new builds as their primary residence, anyone who purchases a new home or condo from a builder, or who hires a builder to construct a new house may be eligible for for a rebate of up to $30,000. There is a key difference, however, between the two programs. When the home will be owner occupied, the rebate is typically applied up front meaning you won’t have to pay it at all. But if you are purchasing it as a rental, you will need to meet certain qualifications, including renting the property for one full year before the amount is returned making it a cash flow item rather than a true cost.
If you’ve been thinking about purchase a new build as an investment, check out the calculator I put together below to see how many tens of thousands you could save with this valuable program!
