New rules for HST rebates on new homes

(December 17, 2012 )

The government has newly released updated rules on the transition from HST to PST on newly built homes. April 1, 2013 is the date set for the returning PST, however the government does not want buyers and builders to wait until April 1, 2013 to save on the taxes. These rules are suppose to help "mitigate distortive market behaviours". 

Here's a quick summary:
  • BC’s portion of the HST will no longer apply to newly built homes where
    ownership and possession transfer on or after April 1, 2013.
  • For newly built homes where construction begins before April 1, 2013, but
    ownership and possession transfer after, purchasers will not pay the seven per
    cent provincial portion of the HST. Instead, purchasers will pay a transitional
    provincial tax of two per cent on the full house price.
  • The BC new housing rebate threshold has been increased to $850,000, meaning
    more than 90% of newly built homes may now be eligible for a provincial
    HST rebate of up to $42,500.
  • Purchasers of new secondary vacation or recreational homes outside the Greater
    Vancouver and Capital regional districts priced up to $850,000 are now eligible
    to claim a provincial grant of up to $42,500.

It is important to note that the HST does not apply to resale housing. For more info, visit the official site at: http://www.hstinbc.ca/buying_goods/buying_a_home/new_home_purchases

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