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Do you qualify for the New Housing Rebate if you build a house?

Do you qualify for the New Housing Rebate if you build a house?

The Ontario New Housing Rebate has been one of the most popular programs in the past couple of years, allowing new homeowners to get back part of the tax they paid when they purchased the property. However, there are still many Ontario residents who do not know about it or who are not aware of all eligibility rules. For example, most people associate the New Housing Rebate program with buying new or renovated real estate, but what about houses built from scratch? These are eligible as well and you can enter the amount you paid on sites such as to find out how much you can get back. So, if you’ve recently built a home from the ground up, you should start the application process as soon as possible, before time runs out. Certain terms and conditions do apply, so here’s what you need to know before looking for an estimate.

Requirements that must be fulfilled to qualify for NHR

First of all, the new house must be built on land that was either owned or leased by you. If there used to be another house on that piece of land, then you will have to bring papers showing that at least 90% of it was removed. If you built a new annex to the existing house, then this annex must double the size of the house, otherwise you do not qualify.

Commercial properties rebuilt into houses

If you purchased land on which there was a commercial property, such as a shop or restaurant, for instance, and then turned it into a living space, you qualify for the New Housing Rebate program. Again, you will need papers to prove that the new building is residential, that 90% of it was removed or that the annex you build doubled it in size.

Is there a time limit to apply for the NHR?

Yes, there is a time limit and, if you qualify, you should submit your application as quickly as possible. The maximum amount of time between construction and application depends on whether you apply for a provincial or federal rebate program. Thus, the limit for federal programs is two years. In the case of provincial programs, it varies. Some provinces allow up to four years, while others only one, so make sure you check requirements in your province so you don’t miss out on the rebate. Also, some provinces may have a time limit for you to move into the newly built house. If more than two years pass, you may no longer be eligible.

Final criterion – house worth

The last thing that you should take into the account before applying for the rebate program is the value of the house. If the house is value at less than $450,000 and you paid the construction less than this amount, you can apply and expect to receive the rate, but if it cost more, you are not eligible.

These are the main criteria for obtaining a housing rebate on newly built homes, but differences may appear between federal and provincial programs. Get in touch with your local authorities if you require additional clarifications.