# New home - primary residence & HST Rebate (Ontario)



## canabiz (Apr 4, 2009)

If you buy a new home with the intention of using it as a residence for your relative but circumstances change and the relative does not move into the residence, can you rent it out?

Do you run afoul of CRA's HST Rebate program and will you have to pay back the rebate amount CRA gives the builder?

Again the intention is to use it as primary residence and not a rental property but personal situations may dictate the changes.


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## Westerly (Dec 26, 2010)

If you were in fact entitled, and the house isn't over the $$ threshold, a change of circumstance may not prevent you from claiming the rebate. If it does, you should still be able to claim the HST "rental rebate" which, as far as I know, is otherwise the same. Not sure if you can assign it to the builder though as in the home version and you may have to sort that part out with the builder (pay up front and wait for your rebate.) I believe the rental lease has to be 1 year. Talk to your lawyer about it.


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## denish (Aug 3, 2017)

I'm wondering about this too. If you buy a condo as a rental property. Is it mandatory you pay HST now and try to get the rebate later?


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## Spudd (Oct 11, 2011)

If you buy it as a rental property you're not eligible for the HST rebate. It's only applicable when you're buying something to use as your primary residence.

https://www.canada.ca/en/revenue-ag...-construction/gst-hst-new-housing-rebate.html


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## denish (Aug 3, 2017)

Spudd said:


> If you buy it as a rental property you're not eligible for the HST rebate. It's only applicable when you're buying something to use as your primary residence.
> 
> https://www.canada.ca/en/revenue-ag...-construction/gst-hst-new-housing-rebate.html


What about this link?

https://www.canada.ca/en/revenue-ag...t-new-residential-rental-property-rebate.html


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## Spudd (Oct 11, 2011)

denish said:


> What about this link?
> 
> https://www.canada.ca/en/revenue-ag...t-new-residential-rental-property-rebate.html


I didn't know that existed. I suggest you read that page to get all the details - I suspect you have to pay upfront and then apply for the rebate.


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## denish (Aug 3, 2017)

Spudd said:


> I didn't know that existed. I suggest you read that page to get all the details - I suspect you have to pay upfront and then apply for the rebate.


Thanks. I was told that, I need to pay up front and then apply for the rebate. Then again I've heard a few different things so I'm not sure exactly what's going on. I heard you need to rent it out for a year minimum, fair enough.

Then again both the New Housing AND the Residential Rental Property are GST/HST "rebates". It seems like with the New Housing, the Government trusts you and it can get sorted out with the builder and you have nothing to pay. But with the Rental Property, you have to pay it up front and apply later for the rebate.


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## carsilike (Jul 24, 2018)

What happens when the builder is including the GST/HST in the sale price? Is it possible to claim it back?


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## can_84 (Jul 2, 2011)

carsilike said:


> What happens when the builder is including the GST/HST in the sale price? Is it possible to claim it back?


If the builder is claiming it on your behalf you cant claim. If the builder requires you to pay for the HST/GST then you can claim with the CRA.


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