SEARCH
Generic filters
Filter by Categories
All Condos
Ask Andrew
Insights
New Condos by City
Aurora
Barrie
Bolton
Bracebridge
Bradford
Brampton
Caledon
Calgary
Collingwood
Dundalk
Halton Hills
Hamilton
Kingston
London
Markham
Thornhill
Milton
Mississauga
Cooksville
Port Credit
Square One
Montreal
Newmarket
Niagara Falls
Oakville
Oshawa
Pickering
Richmond Hill
Smithville
Stayner
The Blue Mountains
Toronto
Bayview Village
Beaches
Bedford Park
Briar Hill
Cabbagetown
Corktown
Corso Italia
Danforth Village
Davenport
Distillery District
Downtown
Eglinton West
Entertainment District
Etobicoke
Fashion District
Forest Hill
Greektown
Harbourfront
High Park
Kensington Market
King West
Leslieville
Liberty Village
Mimico
North York
Regent Park
Rustic
Scarborough
St. Clair West
St. James Town
The Annex
The Junction
The Kingsway
The Queensway
Wallace Emerson
Waterfront
Yonge and Dundas
Yonge and Eglinton
Yonge and Sheppard
Yonge and St. Clair
Yorkdale
Yorkville
Vaughan
Maple
Thornhill
Whitby
Whitechurch-Stouffville
New Condos by Deposit
10% Before Occupancy
5% Before Occupancy
New Condos by Developer
Acorn Developments
Alterra Developments
Altree Developments
Amexon Development
Aspen Ridge Homes
Ballymore Homes
Benvenuto Group
Branthaven Homes
Briarwood Development Group
Broccolini
Brookfield Residential
Camrost-Felcorp
Canderel Residential
Capital Developments
Castlebridge Development Group
Castleview Developments
CentreCourt
Chestnut Hill Developments
Cityzen
Clifton Blake
Collecdev
Concert Properties
Concord Adex
Conservatory Group
Consulate Development Group
Context
Core Development Group
Cortel Group
Craft Development
Creek Village Inc.
Crown Communities
Daniels
Devron
Diamante Development
Diamondcorp
Distrikt Developments
Dormer Homes
Downing Street Group
Dundee Kilmer
Edenshaw
ELAD Canada
EllisDon Capital
Empire Communities
Fernbrook Homes
Fifth Avenue Homes
First Avenue Properties
Flato Developments
Forest Hill Homes
Freed
G Group Developments
Genesis Homes
Georgian International
Gordon Wells Ltd.
Graywood
Great Gulf
Greenpark Group
Hullmark
Kaleido Corporation
Kingdom Development
KingSett Capital
Lamb Developments
Lanterra
Latch Developments
LCH Developments
Liberty Development
Lifestyle Custom Homes
Lifetime Developments
LJM Developments
Madison Group
Marlin Spring Developments
Menkes
Metropia
Metroview
Minto
North American Development Group
Northam Realty Advisors
Old Stonehenge
Options Development
Oxford Properties
Pemberton Group
Phantom
Phelps Homes
Pinnacle International
Plaza
Primont Homes
QuadReal
Reserve
RioCan
Royalpark Homes
Royalton Homes
Saxon Developments
Sierra Building Group
Slate
Solmar Development Group
St. Thomas Developments
TAS
The Remington Group
The Rockport Group
The Sher Corporation
Time Group Corp.
Treasure Hill
Tribute Communities
Tricar
Tridel
Triumphant Group
UrbanCapital
Urbane Communities
VANDYK
Westbank Corp
Westbank Corp. and Allied Properties
Westdale
New Condos by Occupancy Year
2019
2020
2021
2022
2023
2024
TBA
News
Podcast
True Condos Approved
Uncategorized
Videos

My Experience With the New Residential Rental Property Rebate (HST Rebate)

HST Rebate: background info:

I wrote about the HST issue a couple months ago, calling it the “Elephant in the Room” with respect to the pre-construction condo market. I wanted to follow up this post with my own personal experience with dealing with the HST rebates (New Residential Rental Property Rebate-NRRP) when buying a new condo for investment. In short, it was a surprisingly quick and painless process to get back my rebate money once I figured out all the forms and the calculations.

The photo above is of One Park West, or 260 Sackville Street. The building was recently registered and I own a unit in the building which happens to be the Smallest Condo in Toronto. I recently closed on the unit and as an investor-owner had to pay an additional amount for HST on final closing. Here is my story for getting that money back from Revenue Canada:

Note: APS= Agreement of Purchase and Sale

In order to qualify for the rebate, I had to have a tenant in the property and a signed lease for a minimum 1 year (which I did). All in all it only took just 40 days from the time I sent in my application to the time I received my rebate monies back in full. Quite contrary to some of the reports I have heard of it taking as long as a year to get your money back. If you have your paperwork in order and you complete the forms properly this seems to be the result you get. I even was paid some interest on my rebate amount (presumably taking into the account the time I paid it until the time I was paid it back).

HST New Condo Rebate: Additional Learnings

  • Provincial tax (PST) is the biggest portion of the rebate by far
  • Federal tax (GST) is the smaller one
  • Provincial rebate is 100% until Fair Market Value (FMV) hits $450K, then is zero after that
  • Federal rebate is 100% until FMV hits 350K, then reduces down to zero when you hit $450K
  • Therefore if your FMV is less than $350K you should receive 100% of your HST monies back. If your FMV is between $350K-$450K you will receive most of it back. If your FMV is greater than $450K you will receive zero back.

Potential Problems I see with the HST rebate process

  • If the FMV of your condo is $450K you will receive back more than $20K. If the FMV is $451K you will receive zero. What policy maker in Ottawa came up with this scheme??
  • FMV is still a conundrum to me. Who determines it? How is it determined? What happens if the government doesn’t agree with your FMV number?
  • FMV of your unit does not take into account what you will actually ‘net’ on your unit if you sold it at FMV (it does not take into account selling costs).
  • A better system might be to simply add an additional tax on investors who flip their unit after final closing as a percentage of their actual profit. Under the current system, you might both lose money on your sale (due to closing costs when buying and selling), and also have to pay tens of thousands extra in HST just for the ‘right’ to lose money on the transaction. Doesn’t make sense.
  • Is the government in the business of discouraging people from investing in real estate unless that real estate is priced below an arbitrary figure of $450K??
  • FMV is the crux of the calculations used to figure out if you qualify for the rebate. FMV is determined at the time that the HST is paid (at final closing in Ontario). The higher the FMV, the lower the rebate amount. Therefore I observed that it might be better for investors to actually pay the HST amount UP FRONT when buying a pre-construction condo, because this will result in a lower FMV and therefore a higher rebate amount!

Questions about the New Residential Rental Property Rebate (HST rebate)? Wondering if you qualify for the rebate or need help completing the application process with Revenue Canada? Leave a comment below.

October 2012 Edit: It is my understanding that if the FMV is greater than $450K, you will receive the maximum rebate amount up to the value of $450K which is $24K, then any amount over and above the $450K you will be responsible for paying the full HST rebate out of pocket.


Last Updated on

Tags