Eventhough the Ontario Real Estate Association has been working hard to create awareness among consumers about the HST with respect to resale homes there has still been much confusion over what is effected when purchasing a resale home by more than 56% of Ontarians. Even After it came into effect in July 1, 2010 many consumers still believe that HST applies to the full purchase price of a resale home which it does not. Older homes (resale) are exempt from the HST however HST will apply to other services on selling the resale home. The HST is a combination of the 8% PST (Provincial Sales Tax) and the GST (Goods and Services Tax), creating the new 13% HST.  HST Applies to the purchase price of newly constructed homes. However the federal government provides a rebate program to help ease the burden of the tax.The GST/HST New Housing Rebate program provides a rebate on part of the GST or the federal part of the HST paid on the construction or purchase of most newly constructed or substantially renovated houses used as a primary place of residence.

Here are some basic facts about the HST in respect to real estate throughout Ontario including Oakville homes and houses:

• The HST came into effect in Ontario on July 1, 2010.
• Purchasers of newly constructed homes under $400,000 are not subject to the additional tax burden.  Buyers of new homes valued between $400,000 and $500,000 could claim a proportional rebate on the provincial portion of the HST up to a maximum of $24,000.
• The new rental housing rebate is similar to the enhanced new housing rebate, for new residential rental properties.
• HST is not applicable to the sale of a residential re-sale home.
• Real estate commissions are subject to the 13 per cent HST.
• Lawyer's fee will also be subject to the 13 per cent HST, as will the cost of a Condominium Status Certificate, although the total certificate cost will remain at $100.
• Also high ratio CMHC mortgage premiums that were taxed with only the PST are now taxed with the new HST of 13%.

Moving costs, the cost of a home inspection, appraisal fees and even home staging will also be subject to HST.

For more information contact Jo Hardy

67 Lakeshore Ave West. Oakville Ontario L6K 1C9 (905) 338-9000

Cell: 416- 230-1425