DeVrye Renovations Highlights GST/HST Rebate Opportunity For Major Home Renovations In Ontario

WATERLOO, ON: DeVrye Renovations is encouraging homeowners planning extensive renovations to learn about the GST/HST New Housing Rebate, a program commonly associated with newly built homes that may also be available when an existing home undergoes a substantial renovation.

According to the Canada Revenue Agency, a substantial renovation generally requires 90% or more of the interior of the existing home to be removed or replaced. In practical terms, the home is essentially gutted while certain structural elements, including the foundation, exterior walls, supporting walls, roof, floors and staircases, may remain.

For homeowners, reaching that threshold does not necessarily mean replacing every component of the house. CRA guidance explains that interior walls or drywall throughout the applicable area generally need to be removed or replaced, along with other major interior elements. Replacing walls together with either flooring or ceilings throughout the area, for example, can form part of a renovation that satisfies the substantial renovation requirements. Simply repairing or refinishing existing finishes does not count in the same way.

Mechanical, electrical and plumbing systems may also be replaced during a substantial renovation, but complete replacement of these systems is not necessarily required to meet the minimum test. This distinction can be important for homeowners who are already planning a major renovation and may be closer to the substantial renovation threshold than they realize.

“The New Housing Rebate isn't something most homeowners immediately associate with renovating an existing house,” said Aric DeVrye, sales manager of DeVrye Renovations. “The amount of work required to qualify is significant, so this isn't going to apply to every renovation. But when someone is already planning a major transformation of their home, it is worth understanding the requirements before the project begins.”

Homeowners whose projects meet the definition of a substantial renovation may be eligible to recover a portion of the GST or federal part of the HST paid on qualifying renovation costs, provided they meet the program's other eligibility requirements. Ontario homeowners may also qualify for the applicable provincial new housing rebate. Eligibility depends on the individual circumstances of the homeowner and project, and homeowners are responsible for applying for the rebate.

DeVrye Renovations sees the rebate as an often-overlooked consideration in the renovation industry, in part because qualifying projects must be extensive. Raising awareness of the 90% rule can help homeowners undertaking whole-home renovations better understand the financial considerations available to them and ask the right questions as they plan their project.

DeVrye Renovations has served Kitchener-Waterloo and the surrounding region since 1990, completing more than 2,500 renovation projects. The company provides professionally managed home renovations, including kitchens, bathrooms, basements, custom cabinetry and extensive whole-home projects, with an emphasis on workmanship, communication, and detailed project planning.