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Old 2009-07-02, 10:10 AM
tbpage tbpage is offline
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Default GST rebate question

Can anyone here explain to me their experience with a new builder and the GST rebate on new home construction.

I read that we can get a partial GST rebate on a new construction home but when I asked about it with the lawyer's assistant she said that all the builders claim it on your behalf.

Does this mean we don't get the rebate (the builder gets it)? or does this mean we get an equivalent reduction in the GST payable on the home?
If we don't see this rebate at all can we use it to bargain for a few upgrades?

Thanks!

Trev
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Old 2009-07-02, 10:53 AM
newhomeowner2009 newhomeowner2009 is offline
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I may be wrong, but I believe that the builder gets it back. Not you.
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Old 2009-07-02, 10:59 AM
Fingers Fingers is offline
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The builder applies for the rebate on your behalf, and receives the money. The transaction is transparent to you (aside from filling out the form).
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Old 2009-07-02, 01:11 PM
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chrissycee1975 chrissycee1975 is offline
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Default GST Rebate

Hi everyone,
My understanding is that this only applies to purchasers who signed their agreement when the GST was 6% and the rate went down afterwards. I believe that the builder was providing the rebate of 1% to purchasers by deducting it from the sale price; therefore, they will receive the rebate, not the purchaser.
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Old 2009-07-02, 01:49 PM
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BrianT BrianT is offline
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My builder is claiming it on my behalf and they have adjusted the pricing of the house accordingly on our purchase agreement.
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Old 2009-07-02, 09:45 PM
tbpage tbpage is offline
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There is nothing on the government site showing a rescinding of the GST rebate regardless of the GST percentage.

I certainly hope that the GST rebate is either applied at the time of purchase (price reduction) or we can claim it ourselves. I'd be very perturbed to see them trying to bury somehow, especially when I bring it up when I sign...
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Old 2009-07-02, 10:53 PM
Mark & Lynda Mark & Lynda is offline
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Quote:
Originally Posted by tbpage View Post
There is nothing on the government site showing a rescinding of the GST rebate regardless of the GST percentage.

I certainly hope that the GST rebate is either applied at the time of purchase (price reduction) or we can claim it ourselves. I'd be very perturbed to see them trying to bury somehow, especially when I bring it up when I sign...
Most builders (99% of the time) include the GST in the price of the house, and any rebate would be assignable to the builder as they would be absorbing the net GST cost. In other other words they have already reduced the price of the home to you by adding GST to the price and deducting the rebate. There would be no further discounting when you sign. The price you see when you walk in the sales office is the net price.

If you look at the price list you received from the sales office it usually says something like this at the bottom..."G.S.T. & Education Levies are included."

Here are the details of GST on new homes for your reference:

-New homes are subject to the 5% GST. New home buyers can apply for a rebate of the 5% GST applicable to the purchase price to a maximum of $8,750 for homes costing less than $350,000 before GST.
-For new homes priced between $350,000 and $450,000 before GST, the GST rebate would be reduced proportionately.
-New homes priced at $450,000 or higher (before GST) would not receive a rebate.
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