What is the new HST?

Effective July 1st, 2010 the Government is implementing the Harmonized Sales Tax in Ontario. This means that services that are currently NOT subject to Provincial Sales Tax of 8% will now be taxed. ….at a rate of 15% which is a combination of the current GST of 7% + Provincial Sales Tax of 8%.

How does this affect Buying a Home?

Services that are part of the Home Buying process; Home Inspection, Appraisal, Real Estate Fees, Legal Fees, Moving costs etc; are currently only taxed at 7% GST. Starting July 1st these services will all be taxed at 15%. As a buyer you are going to be paying more for all of these services.

What about Buying a NEW home in Ontario after July 1st 2010?

Yes; you will pay HST on the purchase of a new home……but……

Buyers of new homes will receive a rebate of up to $24,000 regardless of the price of the new home.

This rebate ensures that buyers of homes priced up to $400,000 (about three-quarters of new homes built in Ontario) will, on average, pay no more – or possibly even less – tax than under the PST system.

For a full list of services that are affected CLICK HERE

Tags: Harmonized Sales Tax, HST, Mortgages

This entry was posted on Wednesday, March 24th, 2010 at 5:51 pm and is filed under Mortgage News, Uncategorized . You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.