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
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