G.S.T. Reduction Means Big Break For Homeowners

By now you’ve felt at least some of the July 1st G.S.T. cut in everything from your phone bill to the items you buy in the supermarket.

But those purchasing the big tickets items are the ones who truly notice the difference. And it’s especially apparent if you’re a new home or condo owner and qualify for something called the Transitional Rebate.

How do you know if you’re eligible? A lot depends on when you closed that deal for your new property. It turns out if you purchased a new place before May 3rd and closed or took possession of it after June 30th, you’ll wind up with money in your bank account.

The rebate is based on a formula. For new homes and condos that sold for under $450,000, the amount you’ll get back is under one percent. But those who paid more than that $450,000 base figure will get the straight one percent.

And while it doesn’t sound like much, either way it can really add up. “On a $300,000 home, that could be as much as $2,000 in the buyer’s pocket,” explains Stephen Dupuis of the Great Toronto Homebuilders’ Association.

Lois Carrier closed on her new condo July 18th, and is happy to get anything back. “Because my legal costs and land transfer tax and realtor’s fees all have been far more than I thought they would be,” she admits. “I’m just thrilled to get one percent back.”

If you want to get your hands on your rebate first, you need to close on your house, then fill out a form called G.S.T. 193 through the Canada Revenue Agency. For more information, click here or here.

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