How to Calculate The New Housing Rebate with GST at 5%

By
Real Estate Agent with Macdonald Realty 1st Pioneer
http://actvra.in/4C7Y

Short version:  the rebate is just under 2% (1.8% to be exact) for new homes under $350,000.  It gets a little more complicated for homes between $350,000 & $450,000 as a sliding scale is used to calculate the rebate.

Long version:  Here are the formulas from the office conveyancer for those who want to work it out.

The rebate is 36% of the GST paid, with a maximum rebate of $6,300 ($350,000 x 5% x 36%).

Ex. A new house is sold at $275,000, the total cost will be: $283,800.

Selling Price =  $275,000

GST: 5% =  $13,750
Rebate: 36% of GST = $4,950
Net GST payable = $8,800

Total Cost = Selling Price + net GST = $275,000 + $8,800 =  $283,800

For new houses priced between $350,000 and $450,000, a sliding scale is used to calculate the rebate.
The rebate is not available for houses above $450,000.

The rebate is calculated:  ($450,000 - Selling price) / $100,000 x $6,300

Ex. A new house is sold at $364,650, the total cost will be: $377,505.45.

Selling Price = $364,650

GST: 5% =  $18232.50
Rebate: ($450,000 - $364,650) / $100,000 x $6,300 = $5,377.05
Net GST payable = $12,855.45

Total Cost = Selling Price + net GST = $364,650 + $12,855.45 =  $377,505.45

 

You can get more information about The New Housing Rebate here: 
www.cra-arc.gc.ca/E/pub/gp/rc4028/rc4028-e.html

www.cra-arc.gc.ca/E/pub/gm/19-3-1-2/19-3-1-2-e.html

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Location:
British Columbia
Tags:
rebate
formula
calculate
new housing rebate

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Anonymous
Norma

Hello,

I am buying a brand new modular home for $270,000.00, this price includes GST.

What can I expect for a rebate?

I live in SK

 

Jan 19, 2012 07:56 PM #1
Rainer
3,747
Ei-Leen Ong
Macdonald Realty 1st Pioneer - Langley, BC

Norma,

Did you ask the dealer you're purchasing your moduar home from?  They'd know the amount of the rebate.  It depends on your circumstances...read for more info:

http://www.cra-arc.gc.ca/E/pub/gp/rc4028/rc4028-e.html#P618_62973

Hope it helps!

Ei-Leen

Jan 20, 2012 10:14 AM #2
Anonymous
Keith Philips

Visit www.encorehomes.ca. They have a great rebate calculator.

Jul 07, 2014 07:14 AM #3
Post a Comment
Spam prevention
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainer
3,747

Ei-Leen Ong

Ask me a question
*
*
*
*
Spam prevention