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%

 

 

Robert Atkinson

Robert Atkinson

REALTORĀ®
CENTURY 21 Leading Edge Realty Inc., Brokerage*
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