On July 1st, the
About 93 per cent of all homes sold in
It’s important to note, the HST is not charged on resale homes.
In addition it is not charged on:
- home insurance
- mortgage interest costs
- real estate commissions
- legal fees
- new homes
Regardless of the price of new homes purchased as primary residences,, buyers may be entitled to a rebate in respect of the provincial part of the HST of up to $24,000, ensuring that buyers of new homes priced up to $400,000 will, on average, pay no more – or possibly even less – tax than under the PST system. The effect of the rebate is that homes valued over $400,000 will be subject to the 8 per cent provincial part of the HST on the amount above $400,000.
New Rental Housing Rebate
New rental housing, including residential investment properties, receive a similar rebate to the new homes reimbursement. This rebate also supports affordable rental housing in
- Providing up to $1,000 for families (including single parents), or up to $300 for single people, in Ontario Sales Tax Transition Benefits.
- Creating the new Ontario Sales Tax Credit that gives each member of your family up to $260 a year.
- Increasing the energy and property tax relief provided to low- to middle-income people by 70 per cent.
- Delivering an additional $500 a year to help senior homeowners pay their property taxes.
And to leave your readers with some context of how real estate agents are viewing the market, check out http://www.torontosun.com/newhomesandcondos/2010/08/06/14946611.html
I have also provided some additional resources below and if you or any of readers have any questions, just ask
Rachael.MOR@ontario.ca
Some Helpful Links:
Builder Disclosure Requirements
Owner-built Homes, Mobile Homes and Floating Homes in Ontario
Purchasers of New Housing in Ontario
