Harmonized Sales Tax will slow recovery in Real Estate

McGuinty governments plan to harmonize the GST and PST will add over $2,000 to the cost of an average real estate transaction, hurting the resale home market and prolonging the housing industry's recovery from the current economic downturn. Under a harmonized sales tax (HST), home buyers and sellers will have to pay 13 per cent tax on a range of services associated with real estate transactions such as legal fees, moving costs, title insurance, real estate commissions and home inspection fees. Currently, consumers only pay the 5% Goods and Services Tax (GST) on these services. For a resale house priced at $360,000, the Harmonized Sales Tax(HST) could add over two thousand dollars in new taxes to closing costs.

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Jamie Vieira

Jamie Vieira

Sales Representative
CENTURY 21 Miller Real Estate Ltd., Brokerage*
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