If you buy a new rental property, you can save money on your rental property taxes. Property buyers should pay HST upfront, make a down payment, and submit their refund application online. You can use your HST refund to reduce the amount of the mortgage principal owed on the property, and if you sell your property within one year of obtaining the rebate, you must reimburse the rebate money. Thus, the rental hst rebate is becoming more beneficial to many as it reduces the main amount owed on the mortgage. Find out more on the GST/HST requirements for zero-rated and exempted supplies in this article.

Parameters To Consider While Applying For HST Rebate
Currently, Canadian rental properties must have tenants before the HST is paid. To be eligible for a property tax rebate, you must complete Form GST524 within two years of the sale. Suppose you are purchasing a home for investment purposes. The vendor will normally reduce the final purchase price, including HST, by the amount of the new housing rebate, making it easier to afford the property. However, if you purchase a home to live in, you must pay the HST upfront.

The NRRP Rebate is a rebate for buyers of rental income properties. At the same time, the Rebate for Residential Rental Properties program is for landlords who purchase a new rental property and rent it out for one year. Credit cards are used to pay for a higher deposit on a rental property. It makes you eligible for a mortgage more easily because a huge down payment would not require a large mortgage. Flippers of rental properties are not eligible for an HST rebate if they sell their properties within one year after purchasing them.

When purchasing a rental income property in Canada, you may be required to pay HST upfront, which increases the cost. Rent-controlled properties and large renovations and additions to existing residential rental properties are subject to special regulations. Builders should register for GST/HST before purchasing real estate and remit GST/HST on the FMV of the residential rental property.

Residential rental property refunds are given to the builder to recoup GST/HST paid on the self-supplied goods and services. Municipal property tax assessments are not good for calculating the GST/HST payable. Apartment buildings and similar properties are valued differently than condominiums, and self-supply rules apply differently. The self-supply regulations apply to residential properties supplied by a lease, license, or similar arrangement.

Rent-to-own agreements are subject to GST/HST depending on how they are structured. If the tenant ultimately decides to purchase the property, an exempt sale may be possible. According to the guidelines, “self-supply” projects include newly constructed special-purpose complexes and government-subsidized properties.

Landlord Rebate for new residential rental property is available for certain property types, but certain compliance snares exist. The property must be rented out as a primary residence for an individual, and the tenant must use the property for at least one year. The builder-landlord should sell the rental property within one year of GST/HST is applied.

Wrap Up
Finally, property buyers who purchase a rental property take the most advantage of the HST refund. You can apply for an HST refund by applying for the principal mortgage amount, and if you construct a residential rental property and provide it to a tenant, you can collect and pay rental housing tax.

Home additions are one of the most challenging and exciting home renovation projects. Not only does it add additional space to keep your family safe and happy, but it also increases the value of your home. Like any major renovation, it is important to ask the right questions early on and establish a realistic budget to ensure the renovation goes smoothly. Click here to find out more.

Before you start working on your home addition, take time to ponder on these factors.

Why do you intend to create an additional space?

A house addition could be a wise investment for your health and comfort in the future. Before you begin planning for such a large undertaking, take some time to reflect on why you are doing it.

These are some thoughts:

Are you planning to expand your existing rooms? What are your plans for maximizing the space?

Are you looking to increase the number of bedrooms and bathrooms?

Considering your situation what would the purpose of a second bedroom be? Is it possible to make a size concession in this scenario?

What are the most important things you want to include in your home?

Is this an addition suitable for your family members?

Is it possible to add a home extension without spending as much?

How will this affect the sale of your house in the future?

Is it really necessary to construct a second floor from the ground up? Does a partial build with a new master bedroom and a bathroom suffice?

When renovating your house, you should also explore other options besides adding an extension. Achieving your goal without adding a lot – like finishing a basement or tearing down separating walls in order to create more space – can save you money on construction costs.

Partial builds are another option that is more realistic and less expensive. In some cases, you can also add another floor to your garage, but this generally requires a garage to be rebuilt too.

Consider the special feature you need to include

You might have specific architectural features or interior fittings you want to add, and all of these must be considered during the design process. Following are a few special features that you might want to consider for your home addition project.

New fa├žade, siding, windows, doors, roofing, stone, brickwork, and a dormer.

Different styles of flooring, skylights and doors, lighting, or a fireplace in your interior design.

How Much Do You Have To Spend On Your Project?

Home additions are expensive projects. Before you decide on your budget for home renovations, it is important to consider the following questions:

What length of time do you plan to stay in your house?

What price can you afford? What effect will it have upon your quality of life?

What are the prospects for a substantial return on your investment?

While considering smart investments is crucial for a home addition project, as with all other construction projects, it is also important to prepare for the unexpected. Unexpected expenses and delays can occur. To account for unexpected events, always add a 20% cushion to your estimate.

A bank can fund many home additions through a loan or simply add to your existing mortgage payments. You will also be eligible if you have more equity in your home. Banks usually base their decision on the amount you will invest and whether or not it is likely to increase the value of your home.

Do You Need To Be Aware Of Any Building Restrictions?

Before you start construction on your dream addition to your home, check that it is allowed by your local zoning regulations. The bylaws determine the maximum size of a home allowed on your property. They also regulate the size of your yard and landscaping standards.

You must also consider natural features such as trees and other vegetation on your property. The Toronto city administration requires residents to obtain permission before cutting or removing trees.

You will need to submit drawings and applications for permits to build a significant addition to your home before you can begin any major project.


For your home addition project, it might be wise to hire a company with a lot of experience in innovative works. You should ensure that they can provide a portfolio to prove their abilities.

Our experienced developers, contractors, and design firms specialize in home additions and can assist you in building the second story that you have always wanted. Find out more here.

Investors and individuals are drawn to Canada’s successful real estate market. So it is a good point to note the recent issue about the GST/HST Rebates and Rental Investment Real Estate (referred to in GST/HST terminology as “real estate”).

Investors in a rental property may not be eligible for the GST/HST new housing rebate. The New residential rental property rebate is included by default in all the sales and purchases agreements. This is because the investors don’t intend to use the property for their primary residence or the primary residence of their families.

Purchase and sale agreements for new property assume that the buyer qualifies for the New Housing Rebate. They then incorporate the rebate into a tax-included purchase price. Builders can market their homes at a lower cost than usual by using this method. The builder can credit the rebate against the closing tax, which allows the buyer to receive the rebate right away.

Investors who claim the New Housing Rebate incorrectly instead of the New Rental Rebate are regularly assessed by the Canada Revenue Agency (CRA). If they wish to apply for the New Rental Rebate, applicants must submit their applications within a couple of years of the month’s closing time. One must apply for the HST rebate in Ontario within a couple of years of the completion of the project.

What Is The National Rural Redevelopment Plan?

Only new condominiums and new home purchases qualify for the NRRP rebate. The buyer must make plans to rent the condo or home. Canada Revenue Agency (CRA) is responsible for processing rebates. After submitting a rebate request, applicants should keep all supporting documentation and paperwork for six years. The application paperwork should be comprehensive and complete and submitted by the CRA’s deadline. If you would like to know more about the GST/HST, it might be helpful to read the reviews about the same here first.

How To Apply To Get The Hst Rebates In The Correct Way

For each HST rebate application, applicants must submit actual invoices that back up the application of rebate for six years. The CRA will accept only the real invoices signed by the applicant. Canada Revenue Agency will not accept project estimates and monthly accounts statements as valid documentation for tax purposes.

Late Submissions Of HST Refund Applications

As a rule, CRA will not accept any rebate applications submitted after the deadline. However, there are some exceptions. These include sickness or injury, flood or fire, or interruptions in mail services, etc. The New Residential Rental Property Rebate application could be re-considered if the Canada Revenue Agency is responsible for the extension beyond the deadline of 2 years.

What Is The Average Time It Takes To Receive A Rebate?

CRA usually sends NRRP and comparable HST housing rebate within a few months of applying. It is possible to process some rebates in as little as four weeks, and the average HST rebate process can take up to six months. Due to the strict deadlines and application process, some land owners might find it difficult. To speed up the process, it will be a great idea to hire tax rebate experts for help in completing all paperwork.