The real estate market is often difficult to understand by those who have no specialized knowledge. You will need to find a professional to take care of the purchasing process and inform you about the possibilities you have, in order to reduce costs and expenses. Fortunately, the Canadian state has plenty of support programs for its citizens. One of the most popular such initiatives there is the HST housing rebate, which applies for people who want to get a new property or are planning to renovate their current one.
When you plan to substantially renovate your existing house
If you already own a property, but it no longer suits your tastes and needs, then maybe it is time you thought about starting a renovation project. This is not as expensive as actually building or purchasing a house, but it will make you spend a large part of your savings. Fortunately, you can now benefit from a special rebate, which will help you recover a considerable part of the harmonized sales tax (HST) that you have to pay for substantially renovated houses. Furthermore, the program is also available for people whose house has been the destroyed by a natural hazard or by fire. If you apply for the rebate, there are some criteria you need to fulfill in order to become an eligible candidate. To begin with, you need to prove that you have previously hired a dedicated contractor to renovate. After this, you will have to show that at least 90 per cent of the interior of your current property needs to be removed or replaced.
If you want to build a new house
Very often, building a house from scratch is extremely complicated, not only as far as the efforts are concerned, but also in terms of budget management. Finding the perfect land, getting a professional contractor and buying construction materials will prove to be something very costly, so you will need to use some addition cost reduction methods, fortunately, the HST rebate comes to the rescue. Depending on criteria such as your income and the value of the construction, the new housing rebate can help you save a great amount of money that you can then invest in furnishing and decorations. If you qualify for this rebate, the maximum amount you are likely to get back from the government is $6,300.
When you purchase a new home (as a residence or real estate investment)
The HST rebate is accessible to all those who buy a new house or an apartment, directly from a builder. If you want to purchase a new place to live in, for you or a family member, you should know that the HST rebate is offered to the vendor, and as a consequence, the whole purchase price is reduced due to the rebate amount. This has advantages both for the one who sells and for the one how buys the property: while the builder can advertise its house with a lower price (which looks more attractive to clients), the buyers get greater chances of obtaining a mortgage and afford the place. This way, the purchasing process is streamlined.