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New Home Construction - HST Rebate to Builder??

Ben Schmidt of http://www.benschmidt.tv a real estate agent of Fredericton, NB and Oromocto, NB, video blogs about... New Home Construction and HST rebates to builder. Many times I get questions about, what exactly does it mean, when the MLS cutsheet says "HST rebate to builder". Well when a contractor builds a home, they are paying tax on the materials that they put into the home. So if they build a home for $200,000. It actually cost them $226,000 after tax, GST being 13%. Well the provincial and federal government gives incentives to build new homes. One being a rebate on a portion of the tax paid on materials. It is a percentage up to a maximum ceiling of $8,750. So when the builder lists the home at "$226,000 HST rebate to builder", this states that they will be applying for a rebate on your behalf to get a portion of their tax payment back. If you have any questions give me a email, [email protected] or leave your comments here.