Facts on HST as of March 21, 2011

Buying a Home? Get the Facts on HST

HST does not apply to resale homes



      NEWS March 21, 2011
    



Revenue Minister Sophia Aggelonitis and Ontario Real Estate Association Immediate
Past President, Dorothy Mason, today released a video explaining to prospective
buyers the facts about the HST and the housing market.



The video highlights the fact that there is no HST on the purchase price of resale
homes.  Sales tax did not apply to the purchase price of resale homes under the
previous PST, and it does not apply under the HST.



For new housing, additional tax only applies to the portion of the price above
$400,000.



The Ontario Enhanced New Housing Rebate means that buyers of new homes receive a
rebate of up to $24,000 regardless of the price of the new home. Buyers of new homes
priced up to $400,000 (about three-quarters of new homes built in Ontario) on
average pay no more - and possibly even less - tax than under the previous PST,
where sales tax was hidden in the price.



QUOTES


"Buying a home is one of the most important investments a person will make in their
lifetime. That's why I'm pleased to be working with OREA to provide information
about purchasing a home in Ontario."

- Minister of Revenue Sophia Aggelonitis



"A resale home costs tens of thousands of dollars less than many Ontarians think
because HST does not apply to residential resale transactions."
- Dorothy Mason, Immediate Past President, Ontario Real Estate Association



QUICK FACTS
·         The HST does not apply to the purchase price of resale homes.

·         Sales tax did not apply to the purchase price of resale homes under the
previous PST.

·         In addition to not having HST on resale homes, a refund of Land Transfer
Tax of up to $2,000 is available to first-time home buyers of resale homes.

LEARN MORE



Watch the video www.ontario.ca/taxchange or www.youtube.com/oreagr