If you have hired a Builder, General Contractor or hired trades to build a Custom Home within the last 2 years you may be entitled to a tax-free Housing Rebate of up to $24,000 from the Government. This home must be used as your Principal Residence and will qualify for the rebate regardless of your earnings or the fair market value of the home.
The Housing Rebate applies to:
• Custom Homes constructed on a vacant parcel on land
• Homes that are torn down and a new home is constructed
• Cottages that are torn down and a new home constructed as the owner’s Principal Residence
• Modular Homes
Who can apply for the Custom Home Rebate?
In order to qualify for this Rebate, the Custom Home must be owned by a person or group of people. If the Custom Home is owned by a company it will not qualify for the Custom Home Rebate. If a Custom Home is owned by more than one person, only one person from the group can apply for the Custom Home Rebate.
How much is Custom Home Rebate?
The Custom Home Rebate is a maximum of $24,000.
Do Cottages Qualify for the Custom Home Rebate?
In order to qualify for the Custom Home Rebate, the Custom-Built Home must be your primary residence. If the cottage is a secondary property it will not qualify.
What if I built the home and a family member lives in it?
In order to apply for the Custom Home Rebate, the homeowner does not need to live in the Custom Home. A close family member may however live in Custom Home. A homeowner can apply for a Custom Home Rebate if any of the following family members use the Custom Home as their primary residence:
How long do I have to apply for the Custom Home Rebate?
The homeowner of a newly built Custom Home has 2 years to build a home, and 2 years from the date they moved into the Custom Home to apply for the Custom Home Rebate. Therefore, a homeowner can apply for a custom-built home rebate up to 4 years retroactive from today. After this deadline the Custom Home Rebate is no longer claimable.
Do I need to live in Canada in order to apply?
A homeowner does not have to reside in Canada in order to apply for the Rebate. If you own a home that you custom-built and a close relative is using it as their primary residence, you are entitled to receive a Custom Home Rebate no matter where you live in the world.
What happens if I built the Custom Home to flip it?
If you have built the Custom Home with the intention of flipping the property you are not entitled to the Custom Home Rebate. Homeowners are cautioned not to apply for the rebate in this situation. If the homeowner applies for the Custom Home Rebate and receives it , then sells the property within 2 years of building it, more than likely the CRA will send them a tax bill for the Custom Home Rebate they received plus interest.
When should I apply for the Custom Home Rebate?
You can apply for the Custom Home Rebate when the home is 90% complete.
How long does it take to receive the Custom Home rebate?
Once the Custom Home Rebate application is filed you should receive your tax-free rebate cheque in 4-5 weeks.