What is the first-time home buyers’ rebate

Substantial renovation (for the purposes of new housing rebates) – Major changes have to be made to meet the definition of a substantial renovation. In a major renovation project, the interior of a building is essentially gutted. Generally, 90% or more of the interior of the existing housing has to be removed or replaced to qualify as a substantial renovation (the 90% test).

You do not have to remove or replace the foundation, exterior and interior supporting walls, roof, floors, and staircases to meet the 90% test.

Only livable areas count towards a substantial renovation, including finished basements and finished attics. Livable areas do not include garages or crawl spaces. Work done to partially complete a basement but not make it a livable basement does not count toward the 90% test.

If you converted a non-residential property into a house or constructed a major addition onto an existing house and, along with that addition, you also substantially renovated the existing house, the property would generally meet the definition of a substantial renovation for the purposes of this rebate.

Primary place of residence of an individual generally means the residence that the individual lives in on a permanent basis. An individual may have more than one residence, but is considered to have only one primary place of residence. For more information, see GST/HST Policy Statement P-228, Primary Place of Residence.