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

By
Real Estate Agent with Macdonald Realty 1st Pioneer

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

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

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
Ei-Leen Ong
Macdonald Realty 1st Pioneer - Langley, BC

Norma,

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
Anonymous
Keith Philips

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

Jul 07, 2014 07:14 AM
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