If you are thinking about buying a new house or any other type of property (apartment, condo etc), then you should know there are plenty of expenses you need to start thinking about. of course, you may have part of the money, but it takes a lot of financial efforts to keep everything in place and transform a property into a home. Fortunately, if you living in Canada, there are certain prerogatives that you, as a citizen, can take advantage of. The authorities are aware of how difficult it is to build or renovate real estate from scratch, which is why they have launched the house or new condo HST rebate system. The harmonized sales tax is a general refund used in various provinces of Canada, combining the regional provincial sales tax and the federal goods and services tax. Recently, it has begun to be used for real estate as well. This means that even if you invest a great amount of money, you have the chance to get part of it back, through a program aimed to support those who are about to pay for their first home.
How does the HST rebate work?
The HST for homes is available for individuals or families which are about to purchase a new property, be it a house, apartment or condo, directly from the builder. Besides that, those who collaborate with a contractor to have their property built from scratch, or renovated in a minimum of 90 per cent. Another important condition those who want to get the HST rebate must fulfil is to have the real estate built for residential purposes. So, whether you want a place where you and your family can live, or you are planning to become a landlord and rent the property, you can still obtain the HST rebate. This program is extremely beneficial both for owners and for contractors, as it enables builders to advertise a lower “sticker price”, increases real estate transactions and makes buyers easier to qualify for a mortgage for new property.
What is the NRRPR?
The NRRPR, or New Residential Rental Property Rebate, is a sub category of the greater HST home rebate, which enables buyers to get the deduction for a property they are investing in with the purpose of renting it to someone else. There are, of course, certain criteria to be fulfilled, but anyone can apply for this rebate. What is more, experts advise people to start the procedures as soon as they are thinking about building the property, in order to receive the money in a timely and efficient manner.
Who can qualify for the HST rebate?
As mentioned above, the general rule is that the rebate is given to those who are having the house built from scratch – the property has to be new. But, there is also a special rebate provided to those who are renovating a real estate hat has been damaged in a proportion of about 90%. The sum you will obtain depends on your monthly revenues, your credit situation and future plans.