Buying a new home can be an exciting project, but it comes with its share of government fees. Traditionally, when you buy a new home, you must pay the Goods and Services Tax (GST) and the Quebec Sales Tax (QST). However, under certain conditions, you may be eligible for a refund of one of these taxes. This is good news, isn't it?

For an individual, the GST and QST new housing rebate is the recovery of a portion of the GST (or the federal portion of the QST) that was paid on a new or substantially renovated home. This rebate is available where your new home is used as your primary place of residence, or for a relative, and where all remaining conditions are met. Other rebates may also apply for provincial new homes, whether or not the rebate for the federal portion of the QST has been paid.

Are you really eligible for a GST and QST rebate?

Simply put, you may be eligible for a new housing rebate for a portion of the GST/QST paid if you have purchased a new home from a builder or if it has been substantially renovated. This rebate also includes the purchase of a new home on leased land provided the lease is for 20 years or more, or the agreement provides you with the opportunity to purchase the land.

In addition, you may be eligible for a rebate if you have purchased a share of the capital stock of a housing cooperative, if the complex is new, or if it has undergone major renovations.

If you built your home yourself, made major alterations to it, or hired a building contractor to build it, a rebate is available. The market value of the home, when substantially completed, must be less than $450,000.

Finally, if you purchase a new or substantially renovated mobile home (or floating home), you may be eligible for a rebate of a portion of the GST/QST paid on the new unit. In all of the above cases, you must use the unit as your primary place of residence, or it must be occupied by a relative.

In short, if you've fallen in love with a new home and the only thing holding you back is the fact that you'll have to pay government sales taxes, you may be able to get a partial refund of these fees... as long as you meet the conditions detailed earlier in this article.

To find out how much of a refund you may be entitled to, we invite you to visit the following link: https://www.apchq.com/outils/calculatrice-de-taxes

Do not hesitate to contact us with any questions!

If you know anyone who is currently looking to buy a property, feel free to send them this article. You will be saving them a lot of problems.