There is a lot of controversy about the Harmonized Sales Tax (HST) - approaching in just a few weeks now - at the moment. It looks like it here to stay despite the best efforts of its opponents.
How much of this controversy has been created because of the lack of clarity?
I spent some time researching the effects of the HST on the housing market and truth be told I've come up with this:
It's just not that bad.
Basically after July 1st, you will pay slightly more (1.9% on average) for a new home once the GST and HST rebate are factored in.
The HST rebate will be 71.43 or 5% of the purchase price, the current GST rebate - which will not change - operates on a sliding scale. The balance in this approximate 2% difference will come when the builders, who will no longer be paying PST on their purchases, reflect this in the cost of building homes. I expect that we will see these (significant) savings from home builders.
So. crunch the numbers, and let us know how YOUR home buying decisions may fare.