An Ipsos Reid survey commissioned by the Ontario Real Estate Association (OREA) revealed that 56 percent of Ontarians mistakenly believe that the new Harmonized Sales Tax (HST) applies to the full purchase price of a resale home. This is simply not true. Here are the facts:
What You Need To Know If You Are Buying a Home - The HST does not apply to resale homes
- An Enhanced New Housing Rebate means that buyers of new homes receive a rebate of up to $24,000 regardless of the price of the new home
- Buyers of homes priced up to $400,000 (about three-quarters of new homes built in Ontario) on average, pay no more – and possibly even less – tax than under the PST system
- 93 per cent of all homes sold in Ontario, on average, are not subject to an additional tax amount under the HST
- Since December 14, 2007, the Ontario government has extended a land transfer tax refund of up to $2,000 to first time buyers of resale homes
- On new homes over $400,000, additional tax only applies to the portion of the price above $400,000. For example, if a new house was priced at $450,000, additional tax would only be applicable on $50,000
For more information on HST related issues follow this link:
http://www.rev.gov.on.ca/en/taxchange/homebuyers_facts.htm |