This article was originally published on Law360TM Canada (www.law360.ca), part of LexisNexis Canada Inc.
On March 25, Ontario government announced some temporary relief for buyers who are purchasing new homes. The Harmonized Sales Tax (HST) rebate in Ontario is being expanded to all buyers to a maximum of $130,000.00. Both provincial and federal governments will eat up the entire 13% HST. The province will cover its 8% and federal will cover 5% of the HST.
Sounds great!! But the expansion proposed comes with some conditions. There are eligibility requirements, limit to property purchase price value, rebate amounts, construction requirements and a duration component to it. Broadly, I would divide this expansion into two segments. The first is the purchase price brackets or limits with its rebate amount and second is the eligibility factor.