HST Keypoints For Real Estate in Canada

Home buyers and even some new home builders and renovators could be under the impression that any contracts entered into before July 1 will not be affected with HST.

Not so!

Here are some key points to understand:

• Determining whether HST applies to a new home purchase is based on the date of transfer of ownership or possession.
• The amount of the HST depends on the price of the home. For homes under $400,000 HST will apply. Currently every home has a provincial tax of 2% included.In Ontario, there is the Ontario Housing Rebate so you may not see an increase in tax on new homes, there will still be the same 2%
• If construction of a house is 85% complete on July 1, a rebate of 85% of the 2% would be payable.

Sound confusing? Watch for a simplified explanation  and a few examples that I will post over the next few months.  In the meantime, feel free to contact me and I will try to un-confuse you ,( I don't know if there is such a word as un-confuse, but what the heck, if the beaurocrats  can create confusion, so can I)