Impact of HST Increase on New Construction

HST 15 % as of July!!!

Had a quick look through the transition notes and it seems clear that provided you had a Purchase & Sale Agreement in place on or before April 6th 2010 then the new HST rate will not apply to your purchase and you will enjoy the 13% rate. If, however, you buy now and it does not close before the 1st July you will have to pay the increased HST rate and as an example a $200k new construction home will cost an additional $4k.  You still can take advantage of the existing rate provided you can close on the deal prior to the rate increase on the 1st July 2010.

Effect on the market? Contractors are going to pass on the additional cost of building new onto the consumer and as a result new construction prices will rise accordingly.

Check back for more news as it becomes available or drop me a line or three to discuss.

Lee Coley

Lee Coley

Sales Representative
CENTURY 21 Trident Realty Ltd.
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