Calculating the HST New Rental Property Rebate

The government of Canada had introduced the HST New Residential Rental Property Rebate for certain Canadian landowners. The rebate reimburses some expenses incurred by individuals who purchase a newly constructed or recently renovated property.

In this post, you will learn how the HST rental rebate is calculated. However, before you learn how it's calculated, you must first know the eligibility requirements of HST rental rebate for landowners.

What are the Eligibly Requirements of HST Rental Rebate?

HST New Residential Rental Property Rebate is not for everyone. If you are a landowner, you need to meet the following requirements to claim the HST rental rebate in Canada.

• Purchased a new property or one that has been significantly renovated 
• Built a new property or significantly renovated a property
• Made additions to multiple-unit residential rental complex
• Fair market value of the asset must be less than $450,000* 

*In case of land in a trailer park, the fair market value should not exceed $112,500)

Apart from landowners, builders who had to pay HST for selling a residential unit and leased the land to an individual can claim the rental housing rebate. In addition, persons who have to account for HST due to exempt lease of land that is used for residential rental purposes can claim the rental rebate.

How the HST Rental Rebate is Calculated?

Calculating the HST rental rebate is not that difficult. Generally, the rebate is on 36 percent of the HST payable to the government and 75 percent of HST payable to the provinces. The maximum amount for federal portion of the rebate amount is $6,300, while the maximum for the provincial portion is $24,000.




Let's suppose that you own a property valued at $350,000. In this case, the HST rebate will be calculated as follows.

Step 1:

HST payable to the federal government — 5 percent x $350,000 = $17,500

Step 2:

Rebate on federal portion of HST — 36 percent x $17,500 = $6,300 (maximum rebate amount $6,300)

Step 3:

HST payable to the provincial government — 8 percent x $350,000 = $28,000

Step 4:

Rebate on provincial portion of HST — 75 percent x $28,000 = $21,000 (maximum rebate amount $24,000)

Step 5:

Total Rebate — $6,300 + $21,000 = $27,300

So, if you have bought or renovated a property valued at $350,000, you can avail a total of $27,300 credit relief under the HST New Residential Rental Property Rebate.

A lot of people are confused about the calculation of HST rental rebate. At Rebate4U, we help landowners determine the rebate on new and renovated properties. We offer customized services based on exact needs of the landowner. For more information on how we can help you claim HST rental rebate in Canada, you can call us at 1-800-610-4510.

How to Find Out the Most Affordable Rented Home for You in Retirement

Getting a cheap and affordable rented home for you can be a tough job. Various things are required to be kept in mind while you are searching for rented places. 

If you are planning to go on rental home hunting then you should be prepared both mentally and physically because this is the most strenuous phase of getting an affordable rented home. 

Finding the right rented place and that too at the right time cannot be an easy task. You just need to make sure how much you can afford for the house for rent in Chennai and then you can search what kind of apartments can come within that range.

Steps to Be Followed

Affordability

Before even you start your search for the rented places make sure you have decided your budget. Because if you skip this part then you would utterly get confused and letting agents may take this advantage very badly. 

So first make your budget and then search. This will be easier for you to decide on what type of rents you would get. You can also hire a trustworthy letting agent from a renowned agency. With their professional approach you can easily get plenty of options.

Areal Proximity

If you want to cut down the cost then try and search outside the city or outside any urban locations. Rents in the outskirts are quite affordable and cheap as well. But you should also focus on the transport facilities if you are planning to take rent at the outskirts. 

Another option is to find a roommate. This will help you manage the money required for a rental accommodation in Chennai. This will lessen your financial pressures at the same time.

Contacting a letting agent

In this step you need to be very careful while selecting the letting agents as nowadays there are numerous agencies who claim to help you search cheap and affordable rents. So before you contact, make sure the agency and the letting agent is genuine and have a good record. 

With their professional approach they can easily find you a proper place for rent. They will also help you to determine your budget and within that stipulated amount of money they will provide you with plenty of options.

After all these steps you can finally settle down for one. Make sure you check the place before paying the money to the landlord. 

Follow these essential steps if you are searching for places on rent. These steps will help you give a clear cut idea and then you would not face any money problems. Getting a proper place on rent is a tough job. 

 Even of you do not want to hire a letting agent then you can easily search the internet where plenty of options are given on this issue. So basically you need to be aware of the market price and your budget.