HST Rebate Service for Condo Developers and Home Builders in Ontario
If you are a home builder or condo developer in Ontario, a large portion of the people buying a home or condo from you will be purchasing the property
to live in or for a close relative to live in. This means that the buyer will be eligible for an Ontario HST new housing rebate of up to $30k, opening up the
opportunity for you as the vendor to lower the purchase price of the property by this amount in exchange for the rights to the proceeds of their rebate. Offering
this deal to your customers allows you to advertise a lower "sticker price" on your properties, and makes it easier for people to afford your homes or condos since
they will not have to qualify for as large a mortgage.
How Does It Work
Let us say you are a home builder in Milton, ON and the average home you construct sells for $400,000 + HST. This makes the total purchase price after tax $452,000. Most people
purchasing houses from you are buying a primary residence to live in, and will consequently qualify for a provincial new home HST rebate of $24,000, as well as up to $6,000 federally. Instead of potential buyers needing to qualify
for a mortgage large enough to afford the total after tax price and then later applying for the HST rebate on their own, the Government gives vendors the option of lowering the purchase price by the amount of the buyer's new housing rebate in exchange for rights to their rebate. This enables the buyer to essentially
purchase the house for $452k - $24k = $428k, making it easier for them to afford the home, and upon signing the purchase agreement the proceeds of their Ontario HST rebate will
be transferred to you. Our fast and reliable service can then file these rebates on your behalf at a significant bulk discount only available to vendors, and as little as four weeks later the buyer's
new housing HST rebate will be issued to you by the Canada Revenue Agency.
If you are a condo developer or home builder looking for an experienced tax professional to process HST new housing rebates on your behalf, contact our team today!