GST Rebate
You may qualify for up to a 36% rebate of the GST for the entire cost of your new home!   We do not warrant or guarantee your eligibility, please review the Government of Canada website for further information on your eligibility.
Application Download – Builder Built Home
Application Download – Owner Built Home
British Columbia Homes – The BC HST Rebate – After July 1, 2010
Partial British Columbia Harmonized Sales Tax Rebate
Although the BC government and Ministry of Finance indicates that there is currently the 5% GST applicable to new construction homes and BC real estate for sale in addition to 2% PST that is embedded within the cost of new homes on construction nmaterials (as Vancouver and BC home builders can get the full PST rebate currently), the 12% HST or BC Harmonized Sales Tax is applicable to any new housing. The BC government has stated that there will be a partial HST rebate available to homebuyers that is equal to 5% of the purchase price up to a maximum BC HST rebate amount of $20,000 (twenty thousand dollars). As the Ministry of Finance indicates the ‘hidden’ 2% PST tax on construction materials for new homes built in BC right now, they argument is that with the 5% HST rebate on new homes in Vancouver/BC, homebuyers purchasing new property under $400,000 will be paying the same amount before and after July 1, 2010. Essentially, the current 5% GST + 2% PST embedded into current Vancouver new homes is equal to the 12% HST – 5% HST rebate on homes less than $400k purchased after July 1st. However, BC homebuyers looking to purchase new Vancouver property over $400,000 will not be so lucky, as they will be taxed at a rate that is 7% higher than the current GST/PST system because of the flat $20,000 HST rebate allowable by the government. The B.C. Ministry of Finance has indicated that about half of new BC and Vancouver home construction is sold for more than $400,000. Therefore, half of new Vancouver homebuyers will not see a difference in their final purchase cost after the 5% HST rebate is applied, while the other half of new home buyers will see a significant 7% increase in their purchase price even with the $20,000 BC HST harmonized sales tax rebate. There is currently no form or indication of how the BC harmonized sales tax rebate or HST rebate can be claimed at this time, but further information will be released next year.
|
Price of Eligible
New Home (not including GST/HST) |
GST Portion – New Housing Rebate1
|
BC Portion – New Housing Rebate2
|
Total Rebates
|
Purchase Price
(not including property transfer tax & other closing fees) |
New Home Cost Increase
|
|
$350,000
|
$6,300
|
$17,500
|
$23,800
|
$368,200
|
$0
|
|
$400,000
|
$3,150
|
$20,000
|
$23,150
|
$424,850
|
$0
|
|
$600,000
|
$0
|
$20,000
|
$20,000
|
$652,000
|
$22,000
|
|
$800,000
|
$0
|
$20,000
|
$20,000
|
$876,000
|
$36,000
|
|
$1,000,000
|
$0
|
$20,000
|
$20,000
|
$1,100,000
|
$50,000
|
1 New British Columbia and Vancouver home buyers may be eligible for the federal GST Rebate (called the GST new housing rebate), which generally equals 36% of the total GST tax paid on the first $350,000 of the purchase price of a new home. The amount of the federal GST rebate is phased out on a straight-line basis for new BC and Vancouver homes priced between $350,000 and less than $450,000.
2 British Columbia proposed Harmonized Sales Tax rebate (or BC HST rebate) for new housing is equal to 5% of the purchase price up to a maximum rebate of $20,000.
Source: http://www.vancouver-real-estate-direct.com/HST/rebate.html
