Beginning July 1st 2010 the provincial (8%) and federal(5%) taxes will become one. How will this HST tax affect you when buying a home?

    First and foremost, the Harmonized sales tax will not apply to the purchase price of resale homes, but other services and fees surrounding the sale will still be taxed such as real estate commissions, moving costs, lawyer fees and any closing costs.

     After July 1st all new homes in ontario over 500,000 will be subject to the full HST amount (13%) rather than the 5% that is applied now. The government has decided that land transfer tax will still be applied to both resale and new homes and is not included in this new tax.  Housing rebates up to $24,000 are available to new home buyers for purchases above 400,000 regardless of the purchase amount above that, For the HST housing rebate application click here. It is speculated that new home construction will either produce smaller homes under 400,000 to avoid this tax or very high priced homes cutting out the middle bracket all together. It is also fair to note that people may now consider buying resale or rennovate their current home instead of buying a new home with the large 13% tax.

If you would like more information on the HST tax please contact us and we will send you more details.