A repeat buyer's 2025 purchase agreement for a newly built Ontario house sets a price of $700,000 plus HST, and she will live in it. Given that the provincial part of the HST is 8%, what is her Ontario new housing rebate?
Correct Answer
D) $24,000
The Ontario new housing rebate is 75% of the 8% provincial part of the HST, to a maximum of $24,000. The provincial part is 8% of $700,000, or $56,000, and 75% of that is $42,000, so the rebate is capped at $24,000.
Why This Is the Correct Answer
$56,000 times 75% is $42,000, which exceeds the $24,000 maximum, so the rebate is $24,000.
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Previous Question
A real estate agent discovers that their buyer client's mortgage pre-approval has expired, but the client insists on submitting an offer with a financing condition anyway. What should the agent do?
Next Question
An Ontario purchase agreement contains a financing condition stating that, unless the buyer gives written notice that the condition is fulfilled by 11:59 p.m. on a set date, the offer is null and void. Time is of the essence. The buyer sends the notice at 9:00 a.m. the next morning. What is the status of the agreement?