There’s no doubt that Toronto’s hot housing market has made real estate a wise investment. And, as any wise investor knows, taxes are a big part of every real estate transaction. In Ontario, buyers of new construction homes and condos (or properties that have been substantially renovated), must pay the Harmonized Sales Tax (HST).
The HST came into effect in the summer of 2010 and consists of a 5 per cent federal and 8 per cent provincial tax. To help homebuyers deal with the increased cost of buying a new home, the federal and provincial governments introduced a program that reimburses a portion of the HST that could result in upwards of a $30,000 rebate.
The process of applying for the rebate differs depending on whether you’re applying as an investor or an end user. Homebuyers who plan to live in the home have to apply for the New Home Rebate (NHR), while investors must file for the New Residential Rental Property Rebate (NRRPR). Both types must be filed within two years of a new home or condo closing, however each rebate comes with its own unique set of guidelines so it’s important to file for the correct program.
Each year, Finance My HST (FMH) helps hundreds of investors and business clients receive their HST rebate. The Toronto-based tax consultancy specializes in the provincial tax and offers a suite of services for investors, from completing and submitting rebate forms to financing HST payments. The firm’s rebate and HST tax specialists provide a no-cost, no-commitment evaluation of your reimbursement eligibility and offers wide-ranging free sessions to ensure you understand the rebate on investment property in Ontario.
Investors at Dream Residences at Yorkdale know first-hand the value that FMH provides. The 84-unit, mixed-use residential development near Toronto’s Yorkdale Mall has a large percentage of investment suites within the building. The developer of the project, Dream Maker Developments, approached FMH to assist its investors navigate through the HST rebate process. An informative newsletter was released to all the investors in the building with important information on procedures and deadlines. The newsletter educated investors about the HST and detailed how they could fill out rebate forms and opt to finance the HST.
Investors responded positively to the newsletter with over 80 per cent adopting the program, filing their HST rebate forms and successfully obtaining their HST rebates. As a result, Dream Maker Developments saw a rapid reduction on the number of HST extension requests from homeowners.
“Our team was impressed in the way the process was easy and streamlined for our office and the investors purchasing units,” says Isaac Jr. Olowolafe, President Dream Maker Developments Inc. “We are looking forward to using FMH in our future projects.”
For more information call 1 888 660 4413.