Unlock the Maximum HST rebate of Your Home Renovation.

Embarking on a significant home or condo renovation in Ontario can be both exhilarating and financially intensive. But here’s a piece of good news for you: you might be eligible to recover a portion of the GST or federal part of the HST you’ve paid through the GST/HST New Housing Rebate. This incentive is designed to help individuals get back some of the costs incurred during substantial renovations of a home that will serve as a primary residence for themselves or a family member.

Defining a ‘Substantial Renovation’

The Canada Revenue Agency (CRA) characterizes a substantial renovation as one where the existing structure has been largely replaced or removed, transforming it into a brand new residential complex. To clarify, this implies that a vast majority (typically 90% or more) of the interior has been revamped, leaving out only a few structural elements like the foundation, roof, and external walls. It’s akin to bringing the building “back to the studs”, with significant changes that go beyond mere repairs or superficial enhancements.

Determining Your Eligibility

You may wonder if your renovation project qualifies for this rebate. The criteria hinge on the extent of the modification— a minimum of 90% of the pre-renovation building must undergo alterations. You can gauge this using various methods, such as evaluating the floor and wall space modifications or counting the number of renovated rooms. Notably, additions to the existing structure generally do not contribute to determining the substantial renovation status. Different rules may apply if you are claiming a HST rebate on your Rental Property. 

Conversions and Rebate Opportunities:

Converting a non-residential building into a residential one opens up opportunities for claiming the new housing rebate. Even if minimal work is carried out, the conversion process itself deems the structure substantially renovated, potentially resulting in higher rebate amounts, especially considering the HST paid on the land value at acquisition time.

Considering Major Additions:

Significant additions to your existing residence, combined with renovations, might also make you eligible for the new housing rebate. This is particularly true if the addition and renovation work transform the building into what can be seen as a newly erected residence. It’s essential to assess both the extent of the renovation and how the existing structure integrates into the new layout to determine eligibility.

Time Frame for Claiming Your Rebate:

If you have initiated substantial renovations while residing in the house, a four-year window is available for completing the renovation and filing for the rebate. Different scenarios concerning occupancy and renovation timelines might affect the duration available to claim this rebate.

Your Trusted Partner in Claiming the HST Rebate:

Securing the HST rebate can be a complex journey, but our team, boasting over 10 years of experience, is here to guide you every step of the way. We specialize in assisting with HST tax rebates, providing expert advice and simplifying the application process for you. From helping you navigate the necessary forms to ensuring timely and accurate submissions, we are committed to helping you maximize your rebate potential.

Ready to Discover Your Rebate Amount?

Get ahead and estimate the rebate amount you could be entitled to on your substantial renovation project using our Major/Substantial Renovations HST Rebate Calculator. Dive in now and take the first step towards optimizing your investment in your home or condo renovation!

For personalized guidance and to learn more about the GST/HST New Housing Rebate, don’t hesitate to reach out to our GST/HST tax experts.