How does the HST affect Real Estate?
Yes, it can be confusing but it's not necessary. Here's a table that explains it quite simply.
New Homes up to $400,000
- before July 1, 2010 5% GST payable / no change after July 1, 2010
- The new housing rebate will be 75 per cent of the Ontario component of the HST, up to a maximum of $24,000. The rebate will ensure that buyers of homes priced up to $400,000 will, on average, pay no more tax than under the RST system. However, applicable RST on building supplies is embedded in the price of the home.
New Homes over $400,000
- before July 1, 2010 5% GST payable / CHANGES after July 1, 2010
- New homes purchased as primary residences, valued at $400,000 or more will be eligible for the maximum new housing rebate of $24,000.
Resale Homes
- no GST / PST or HST before or after July 1, 2010
Real Estate Commissions
- before July 1, 2010 5% GST payable / After July 1, 2010 it increase to 13%
Posted by Robert Atkinson
on May 4, 2010