FAQ for Real Estate Transactions
ARE YOU PURCHASING A PROPERTY FOR INVESTMENT PURPOSES OR DO YOU PLAN TO RESIDE IN THE PURCHASED PROPERTY?
The answer to this question can have serious tax implications and will also impact your ability to obtain mortgage approval. If you do not plan to reside in your property, then you are required to disclose this to your lender and the lender will use more stringent criteria to qualify you for a mortgage.
If you, your spouse, children, common law partner or sibling plans to occupy your newly purchased property as your principal place of residence then you may qualify for an HST rebate. The maximum allowable Ontario rebate available is $24,000.
DO I QUALIFY FOR THE HST REBATE ON MY NEWLY BUILT PROPERTY PURCHASED FROM A BUILDER IN ONTARIO IF MY PROPERTY COSTS MORE THAN $450,000?
If the total purchase price of your property is more than $450,000 and you or your relation plan to occupy the property as your primary place of residence, then you will not qualify for the rebate for some of the GST or federal part of the HST. However, you may still be eligible to claim a provincial new housing rebate for some of the provincial part of the HST you paid to buy your house so long as you or your relation plan to occupy the property as your primary place of residence.
DO I QUALIFY FOR THE HST REBATE ON MY NEWLY BUILT PROPERTY PURCHASED FROM A BUILDER IN ONTARIO IF I DO NOT PLAN TO OCCUPY THE PROPERTY AS MY PRINCIPAL PLACE OF RESIDENCE?
If you paid the GST/HST on the purchase of newly built property or substantially renovated property and you lease the property or unit to another person for residential use by an individual, then you may qualify for a rebate on the federal part of the HST and you may be entitled to claim a rebate for the provincial part of the HST as well.
HOW ARE SALE PROCEEDS DIVIDED BETWEEN SPOUSES WHEN ONLY ONE SPOUSE IS ON TITLE AND THE PROPERTY IS NOT CONSIDERED MATRIMONIAL PROPERTY?
All net sale proceeds will be made payable to the spouse registered on title where the property is not deemed to be matrimonial property and the consent of the spouse not on title is not required for the sale to proceed.