HST Rebate Frequently Asked Questions
1. What type of renovation would qualify to receive a rebate?
To be eligible for a rebate, your renovation must be completed within the past two years and would need to either:
- be considered substantial ; i.e. 90% of the home would have to be renovated, or
- at least double the liveable space of your existing house ; i.e. adding a full second story to a bungalow.
2. We demolished an existing house and built a new house on the property. Would the construction of the new house qualify for a rebate?
Yes. Construction of a new home, within the past two years, would qualify to receive a rebate.
3. We have purchased our new home from a builder. Are we eligible for a rebate?
Yes. A new or substantially renovated home purchased from a builder within the past two years, where you are the first occupant after the construction is completed, would be eligible for a rebate.
4. We have purchased a newly built condo as a rental property. Are we eligible for a rebate?
Yes. If you have purchased a newly built home or condo as a rental property, you will be entitled the rebate. You will need to have a tenant with at least a one year lease to be eligible for the rebate.
5. Are you eligible to receive a rebate for a recreational property?
No, the rebate only applies to principal residences. Recreational properties or second homes are ineligible for the rebate.
6. When can I submit a rebate application?
You can apply for a rebate after the construction is substantially complete and you are occupying the house. However, as you can only file one rebate application, you may want to wait until all of the work is completed to maximize the value of the rebate you receive.You have up to two years after the substantial completion of the construction to claim your rebate.
7. How long will it take to receive the rebate?
It could take up to six months for the Canada Revenue Agency (CRA) to process the rebate application. However, our experience has been that the rebates are usually received within two months from the mailing of the rebate application.
8. What is required from the homeowner to complete this process?
There is very little involvement required from the homeowner. We will provide you with a list of the documents and information we require in order to complete our review and prepare the rebate applications. We may have some questions for you when we are completing the application but once the application is complete, all you will need to do is sign and mail it.
9. Will my rebate claim be subject to review?
All rebate claims may be subject to review before or after any payment is made by the CRA. KCL will review all expenses and supporting documentation to ensure eligibility for the rebate before submitting the claim. The CRA could request to review supporting documentation for the rebate application for a period of up to six years from date of receiving the rebate.