Revenue Minister Sophia Aggelonitis and Ontario Real Estate Association immediate Past President, Dorthy Mason, today released a video explaining to 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 appy 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 Reate 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 on average pay no more - and possibly even less - tax than under the previous PST, where sales tax was hidden in the price.
- 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.
Hope you found this helpful!