You’re looking to buy a new home in Canada, and that’s exciting. Home buying can be expensive, though. Ontario raised the taxes on buying a new home, which has made it even more expensive for the home buyer. If you need to save some money, there is good news. To offset the tax, Ontario introduced a new housing tax rebate that tries to return money to new home buyers. Keep reading to see how you can see money on your new house.
How do you know if you’re eligible for the rebate? If the house you’re buying is “new.” In other words, if you’re buying a newly constructed or substantially renovated one, or if you’re newly constructing or substantially renovating a house you plan to live in, you’re most likely eligible. The wording of the rebate is more complicated than that, but if you’re going to live somewhere “new,” look into it to see if you may be eligible.
Initial Price Cut
If you’re looking to get the new housing tax rebate in Toronto, Ontario or another Ontario city, there are a few ways you can time it. The rebate can’t be rewarded until the sale of the house is final. Your first option is to sign the rights to the rebate over to the seller to receive a lower price on the house. That means that you get a price lowered according to the rebate amount, and the seller gets the rebate money when it goes through. Essentially, you’re paying for one portion of the house, and the government pays for the other.
Rebate Rewarded Later
The other option is to buy the house at its original price and receive the rebate after the purchase. This means that, up front, you’re still paying the same amount of money. However, once the sale of the house goes through and the rebate comes in, you get some of that money back. The key with this option is to apply for the rebate as soon as possible because it can take some time to process.
If you’re looking for a new housing tax rebate in Toronto, Ontario, contact The Taxperts Group.
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