Over Half of Ontarians Still Confused About HST and Resale Homes
According to a recent survey that was commissioned by the Ontario Real Estate Association (OREA),
56% of Ontarians still think that the HST applies to the full purchase price of a resale home.
The HST is NOT applied to the purchase price of resale homes. It is however applied to various
transaction fees associated with the purchase.
Some of those associated fees are:
- Real estate commissions
- Lawyers fees
- Home inspections
- Home staging
- Moving costs
- Utility hookups
These are just a few of the after sale services that would be subject to HST.
Also, purchasers of newly constructed homes under $400,000 are not subject to the HST (other than the associated fees after the purchase) on the purchase price. If the purchase price of the newly constructed home is between under $500,000 the buyer could claim a proportional rebate on the provincial portion of the HST up to a maximum of $24,000.
For more info on Buying a home and the HST rebate click here
For more info on what is taxable and what is not click here.