Investing in New Condominiums

G.S.T.

• The purchase price includes a component equivalent to the federal goods and services tax (G.S.T.) less the new housing rebate, if applicable, as prescribed by the Canada Excise Tax Act.
• For an investment property, an amount equivalent to 35% of the total G.S.T. calculated is payable by the purchaser to the Vendor on final closing.
• Within a 2 year period the purchaser may be entitled to claim this amount in the form of a HST Investor rebate if they meet the government's criteria. These include (but are not limited to) having a minimum one year term residential lease on their property whose tenant was the first occupant of the suite.
• Purchaser / Landlord eligible for the "residential rental property rebate" should file HST 524.             

Links: 

HST New Residential Rental Property Rebate Guidelines
HST New Residential Rental Property Rebate Application

HST New Housing Rebate

Program

You may be eligible to claim a rebate for a part of the HST you pay on the purchase price or cost of building your home if:

• you buy a new or substantially renovated home (including the land or if you lease the land) from a builder;
• you buy a new mobile home (including a modular home) or a floating home from a builder or vendor;
• you buy a share of capital stock of a co-operative housing corporation;
• you construct or substantially renovate your own home, or carry out a major addition (or hire another person to do so); or
• your home is destroyed in a fire and is subsequently rebuilt.

Details

• Resale homes are exempt from the HST.
• New homes are subject to the HST. New home buyers can apply for a 36% rebate of the HST applicable to the purchase price to a maximum of $6,300 for homes costing $350,000 or less before HST.
• For new homes priced between $350,000 and $450,000 before HST, the HST rebate would be reduced proportionately.
• New homes priced $450,000 before HST or higher would not receive a rebate.

NOTE: In the Greater Toronto Area, most builders include the HST in the price of the house, and any rebate would be assignable to the builder as they would be absorbing the net HST cost.