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Ben Sage, Moving Woodstock

HST and its impact on Real Estate – Scotiabank Update

Posted on March 22, 2010 by Ben Sage in Woodstock Ontario Real Estate

Hello all,

This morning I got an update from Heather Degraaf at Scotiabank regarding HST and it’s impact on Real Estate Sales. This has clarified a few issues and questions for me, so hopefully it will be helpful for you:

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What is HST?

The merging of the current Provincial Sales Tax (PST) with the Federal Goods and Service Tax (GST) into one new tax.

Who does it Affect?

The New HST affects Ontario and British Columbia

Nova Scotia, New Brunswick, and Newfoundland have already implemented a Harmonized Tax while Saskatchewan, Manitoba, Quebec, and Prince Edward Island all collect separate PST or QST (Quebec)

How much is it?

In Ontario, it will be 13% (5% GST + 8% PST)

When will it be implemented?

Beginning July 1, 2010

How does it affect the sale of my current owner occupied principal residence (resale)?

The sale of housing that has been previously occupied by an individual as a place of residence and that was exempt from GST would also be exempt from HST

When does the HST apply to the sale of a new construction home or new rental property?

Builders sales of newly constructed or substantially renovated homes would be subject to HST when both ownership and possession of the home are transferred after June 30, 2010.

The provincial portion of HST would not apply to builders sales of newly constructed or substantially renovated homes that are taxable under the GST where, under a written agreement of purchase and sale, ownership or possession of the home is transferred before July 1, 2010.

The HST would not apply if either the ownership or possession of the complex is transferred, under a written agreement of purchase and sale, to the purchaser, before July 1, 2010 or if the sale was entered into on or before June 18, 2009 in Ontario and November 18, 2009 in British Columbia, regardless of the ownership or possession date.

Is there a Housing Rebate?

Yes, new housing rebates would apply when HST is charged and the purchaser would have qualified for a GST rebate

Please visit http://www.rev.gov.on.ca/en/taxchange/index.html and http://www.gov.bc.ca/hst for more information on the rebate.

Are other closing costs subject to HST?

Yes, other costs associated with the purchase of you rnew house, including legal fees, home inspection fees, appraisal fees, and real estate agent commission fees will be subject to HST.

This information was provided by Heather Degraaf, Mortgage Development Manager, and Heather can be reached at 519-421-5260

For more information, feel free to contact Heather, or myself!

Ben Sage, Sales Representative. http://woodstockhomes.com http://www.oxfordcountyhomes.ca Re/Max a-b Realty Ltd., Brokerage. 519-536-7535. 521 Dundas St., Woodstock, ON

This post originated at my website, located at www.bensage.com

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