Barrie always has a lot of new construction going on. New homes in Ontario are subject to HST on the purchase price. Usually, this is built into the offer price, so that you don’t end up having to pay extra, but that always factors in that you’ll qualify for the provincial and federal HST rebates on a new home. If you are buying a brand-new home, you may entitled to a rebate, but only in specific circumstances:
- You must intend to live in it as your primary home. It can’t be a cottage or other seasonal residence.
- If you are not going to live there, an immediate family member of yours (or of your spouse’s) must intend to live there. You can allow your brother to live there and get the rebate, but you can’t rent it to a friend.
If you don’t meet these requirements, you may end up paying a lot in HST that you weren’t budgeting for. If you aren’t sure whether you qualify, as a professional accountant before you go firm on your offer.
