How does new build tax rebate work in Ontario
I’m looking at a contract for a new build (Avalon in Caledonia by Empire builds). The contract states:“the purchase price is inclusive of HST, net of the Ontario new housing HST Rebate”. what does this mean?
My interpretation was that, the sticker purchase price we are seeing already includes the HST and the rebate. So, on closing…I’m not going to see an additional 8% reduction from the purchase price.
The contract does have a clause accounting for the proposed new build rebate (the other 5% making up 13%).
My real estate agent says she is 100% sure that the purchase price at closing will have a 13% reduction, either assigned as a rebate to the developer or I apply for the rebate myself to the CRA to get it back.
So am I right or is my real estate agent right because obviously this is a big difference.
Here’s the actual contract paper attached….i think it’s saying the proposed new rebate (the additional 5%) will be reduced from the final purchase price if everything checks out or is it saying that this too will be already accounted for in the purchase price meaning the price I see is what I get? Edit: I’m not a first time home buyer so that doesn’t apply to me.