October 27, 2010
Recently an Ipsos Reid survey was commissioned by the Ontario Real Estate Association (OREA), which states that 56 per cent of Ontarians believe that the new Harmonized Sales Tax (HST) applies to the full purchase price of a resale home. Nope. This is not the case.
In fact the HST is only levied on the various transaction fees associated with the purchase of a home that has been previously occupied (i.e. not a newly-built home).”
Buyer beware, the HST does in fact affect the purchase of a lot of NEWLY built homes. Purchasers of newly constructed homes under $400,000 will not be subject to an additional tax burden, and buyers of new homes valued between $400,000 and $500,000 can claim a proportional rebate. If your new home is above $500,000, yup, you are paying the HST.
Check out the video below by OREA… Is this issue affecting homesales?? Looks like it, and that is a shame.