A buyer is purchasing a brand-new condo unit as an investment property. What is the primary difference in how HST New Housing Rebates apply compared to buying it as a primary residence?

Question: A buyer is purchasing a brand-new condo unit as an investment property. What is the primary difference in how HST New Housing Rebates apply compared to buying it as a primary residence?

Answer options:

• No HST is charged on investment properties.
• The HST New Housing Rebate is not available for investment properties. ✅ The rebate must be applied for directly by the buyer after closing, rather than being assigned to the builder.
• Investment properties receive a higher HST rebate.

Correct answer: The rebate must be applied for directly by the buyer after closing, rather than being assigned to the builder.

Explanation: For investment properties, the HST New Residential Rental Property Rebate (NRRP Rebate) applies. Unlike an owner-occupied primary residence where the rebate is typically assigned to the builder upfront, the investor must apply for the NRRP rebate directly with the CRA after the property is rented and conditions are met.