Since the introduction of HST, there has inevitably been some confusion as to how it applies to real estate transactions.
HST does not apply to resale homes, only new homes. However, it seems that a large number of people in Ontario are still unsure as to how HST affects their real estate purchases. A recent survey from the Ontario Real Estate Association (OREA) showed that 58% of people in the province believed that HST applied to existing homes.
It should be noted that there is an HST rebate for homes sold as primary residences that sell for less than $400,000. Buyers can get a rebate of up to $24,000.
HST does however; apply to some of the services associated with the real estate transaction for new and existing homes, such as HST on commissions and legal fees.
For more information please see: http://www.rev.gov.on.ca/en/taxchange/taxable.html
For any real estate assistance in the Oakville, Burlington, Milton area contact Mary at email@example.com