If you have hired a Builder or a General Contractor to build you a Custom Home within the last 2 years that is or will be used as your Principal Residence and has a fair market value of up to $450,000, then you may be entitled to a tax-free Housing Rebate of up to $6,300 from the Government.
Effective April 1, 2020 homeowners may also be entitled to an additional $8,000 Rebate for building a Custom Home. In order to qualify, the homeowner must take possession of the home after March 31, 2020 and before April 1, 2023. The rebate is available on newly constructed homes with a total price of less than $450,000 before taxes and excluding the value of the land and the price of any furniture, furnishings, and appliances. The amount of the rebate is reduced for homes with a total price between $350,000 and $450,000, with no rebate available for newly constructed homes with a total price of $450,000 or more.
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 Saskatchewan?
In order to qualify for the 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 in Saskatchewan, Canada?
The Custom Home Rebate is a maximum of $14,300.
Do Cottages Qualify for the Custom Home Rebate in Saskatchewan, Canada?
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 in Saskatchewan 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 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 including:
How long do I have to apply for the Custom Home Rebate in Saskatchewan?
A homeowner of a custom-built home has 2 years to build a home, and 2 years from the date they moved into the Custom Home to apply for the Rebate. Therefore, a homeowner can apply for the rebate up to 4 years retroactive from the day they started work on their custom home. After this deadline, the Custom Home Rebate is no longer claimable.
Do I need to live in Saskatchewan, 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 your custom-built and a close relative is using 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 in Saskatchewan, Canada 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 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 in Saskatchewan, Canada?
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 in Saskatchewan?
Once the Custom Home Rebate application is filed you should receive your tax-free rebate cheque in 4-5 weeks.