WHAT HOME/CONDO BUYERS NEED TO KNOW ABOUT HST

Are you still confused about HST and how it applies to real estate?  Here is some information that will clarify any confusion you might be facing. 

  Since resale housing was never subject to the Provincial Sales Tax (PST) or the

federal Goods and Services Tax (GST), it continues to be exempt from the new

HST.

Conversely, newly constructed homes were previously subject to the GST,

meaning that the HST now applies. The provincial government however, provides

a rebate of 75 per cent of the PST on the first $400,000 on new homes, to a

maximum of $24,000.

“When considering the purchase of any type of home, it is important to budget for

additional costs, like the Land Transfer Tax and property taxes. Fortunately

though, the purchase price of a resale home is one area of relief for taxpayers and

recognizing that a home is many people’s single largest investment, this

exemption is an important consideration.