As we all know, HST (Harmonized Sales Tax) will become in to effect beginning July 1st, 2010. It will be comprised of the 8% provincial tax and the 5% federal GST (Goods and Service Tax) which will become the 13% HST.
How does HST affect real estate transactions? It will not be applicable to purchase prices of re-sale homes but however it will apply to the services such as moving costs, legal fees, home inspections & real estate commissions etc.
However, if you are purchasing a newly constructed home, it will be applicable to the purchase price. There is a proposed rebate that you may be eligable. Click here for more information.