How Do I Find Out How Much HST I Have to Pay?

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How do you find out how much HST you will have to pay when you are using a new construction residence for anything other than a primary residence?
 
First, call us at HST Relief: Rebates and Loans for a free consultation about what expenses you can expect on closing of an investment property, including how much cash you need to have available to cover the remaining HST due. Each circumstance and its eligibility for the HST rebate depend on many variables, such as who is moving in to the newly constructed condo, what circumstances the property was purchased under and how the property will be used, etc. Do not forfeit your right to the HST Rebate by not understanding CRA’s regulations. Instead of reading CRA’s 74 page manual, call HST Relief and tell us about your investment. Our consultation is free. If you are concerned about having enough liquid cash to cover the HST, HST Relief offers loans in the form of bridge financing to cover the HST amount until we recover the rebate from CRA 45-60 days after closing. It is a very short term loan that ensures you will maintain your investment by closing the property successfully on time.
 
The HST amount due on closing for an investment condo is weighted based on the purchase price and ranges from $17,000 to $29,000. Remember that the amount of HST due on closing is the same as the HST rebate amount you can file for after closing. To qualify for the rebate, you must have a 1 year lease in place with a renter. 

 

If you’re searching online, be aware of many incorrect websites and information floating on the web. If you are interested in a reliable chart that gives approximate HST costs, check out Genworth’s site here. For more online reading, check out our clients’ FAQs with our team’s detailed answers posted here.

 

In addition to the HST amount due on closing, you will have other substantial closing costs. These generally include: Levies, development charges, an appraisal fee for your mortgage, lawyer’s fees and sometimes the taxes to be paid upfront. It’s not unlikely that a small condo investment will yield up to $15,000 in closing costs outside of the HST due.

Costs for the HST of new home rental investment property

Hi,
 
My client is purchasing a new home from a builder.  What additional costs should they plan for?

Answers

By HST Relief (Admin)
Great question.  Usually your solicitor or real estate lawyer is a good person to explain all the costs associated with closing on an investment property.  When you are buying new construction, make sure to also be aware of the HST rebate portion that is due on closing if the property will not be used as a primary residence.
 
Here are some of the costs associated with buying new construction real estate:
 
- development fees
- levies
- land transfer tax - provincial and city (for Toronto)
- lawyer's fees
- sometimes the builder's solicitor will hold 1- 2 years of city taxes to be paid after closing
- HST Rebate portion due on closing
 
Call us to file to get your HST rebate back.  We can claim $17,000 - $29,000 back in HST that you have apid on your new construction investment property - whether it's a house, townhome or condo and whether it's in Toronto or elsewhere in the province of Ontario.  Give us a call now: 1.866.832.1990.
 
We also provide loans for the HST portion due on closing. The loan is paid off when we recover the HST rebate from CRA.  It essentially prevents you from having to pay CRA upfront.
 
 

When do I get back the HST paid on a new home?

I just signed for a new construction condo.  When do I pay the HST and when will I be able to reclaim the HST back through a government program?

Answers

By HST Relief (Admin)
You pay the HST due on closing and the day after closing, you are eligible to file for the HST Rebate to reclaim the portion of HST you paid on closing.
 
TO put together your rebate filing and reclaim your HST government rebate, please call us at HST Relief - 1.866.832.1990 or email us at info@hstrelief.ca
 
 

Who is responsible for the HST on new house in Ontario?

The article above really explains well how HST works for a new house or condo that has been purchased.  Thanks for the help, HST Relief.  I will be calling you for an HST loan and to file for my HST Rebate.

Exactly how much HST will I have to pay for my condo closing?

I have a condo that I purchased at High Park Residence by Daniels on Bloor Street West.  I got a great deal and paid 289,500 for it (small condo, yes!).  I guess I should start looking into how HST will work if I do not move into the condo when it is ready.  Is it possible for you to tell me exactly how much HST I will need to close this new condo as an investment property?

Answers

By HST Relief (Admin)
Exactly how much HST is already covered in your sticker price on the Purchase Agreement and how much will be due on closing if it's not used as a primary residence, depends on the builder.  The terms should be in the fine print of your Purchase Agreement.
 
However, most builders ask for the rebate able portion of HST on closing (or issue the HST New Housing Rebate if it will be used as your primary residence to credit you this amount).  For a condo that costs 289,500 you should expect to pay $21,500 in HST on the closing date.  Remember that you will have other major expenses tacked onto the purchase price at that time too including levies, development fees, land transfer tax and lawyer's fees.  If you need help with the HST amount due on closing, call us.  We offer HST loans that we issue on the short term until we file and recover your HST rebate from CRA.  1.866.832.1990 info@hstrelief.ca

How much should I have ready to pay in HST?

I have a condo that I signed an APS for $341,900.  How much should I set aside to pay in HST?

Answers

By HST Relief (Admin)
If your new construction condo is not going to be your primary residence, but an investment property, then you should expect to pay about $25,350.00 in HST on the closing date.
 
Call us at 1.866.832.1990 to find out how to reclaim this HST paid on closing.
 
 

First Canadian Place • 100 King Street West • Suite 5700 • Toronto, ON • M5X 1C7

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