What Is an HST Rebate Loan?
An HST Rebate loan is a specific
type of short-term loan. It is intended to facilitate the payment of the HST
that is due upon final closing by investors who are purchasing a new investment
property from a builder.
The New Housing HST Rebate is
available from the Canadian Revenue Agency as a method of recovering the HST
that is paid upon final closing of a new property. This applies to both
condominiums and houses.
In the event that the purchaser
of the property (or an immediate family member) is going to occupy the
property, the builder will pay the HST due and put an agreement in place to
have the HST rebate signed over. The final purchase price will reflect this
agreement and the purchaser is not responsible for the HST upon final closing.
The payment of the HST due on the new property
the method of claiming the HST rebate are different for investment properties
that will not be owner-occupied. The responsibility of paying the HST due for
the property falls on the purchaser and it must be paid in full by the final
closing date. The problem is that the HST rebate cannot be claimed until after
the final closing.
An HST Rebate Loan is a loan
that is intended to effectively bridge the gap between when the HST is due on
the final closing of a new
and the time it takes to successfully claim the HST
rebate and receive it.
How Can You Get an HST Rebate Loan?
The payment of the HST by the
purchaser at the time of final closing is still a relatively new and unknown
expense. As a result, many investors are surprised when they are made aware
that the responsibility of paying this significant expense falls on them. In
many cases, the amount of the HST is not included in the amount that is
budgeted for the final closing. This leaves investors scrambling to come up
with additional money for the HST, sometimes just days before the final closing
Despite the obvious need for HST
payment short-term loans, most of the big banks will not provide HST Loans.
There are other financial options available for securing an HST Rebate Loan;
HST relief companies specialize in providing these specific loans to investors
to ensure that they are able to successfully meet the requirements of the final
closing. HST Rebate Loans can be secured for up to $27,000 in the form of a
second mortgage as long as the credit and debt service ratios are within
Additional Benefits of Securing an HST Rebate Loan
An HST Rebate Loan will allow for
the final closing to go smoothly despite any surprising HST costs that are
incurred. This will protect the investor from losing the deposit and prevent
any possible litigation action that could potentially be taken by the builder
in the case of a failed closing.
Ensure a smooth final closing
despite any HST surprises; discover the professional financial assistance and
convenience available with an HST Rebate Loan from one of the top HST lending