As we get closer to July 1st, 2010, many are wondering how will the HST affect the housing market and how much more one has to pay for their residential home purchase due to the HST. Basically, Buyers of new homes priced up to $525,000 will be eligible for a rebate of 71.42% on the provincial portion of the HST. For example, exercising the full rebate for a purchase of a home priced at $525,000, will amount to $26,250 which is the maximum allowable rebate amount available. Homes above the $525,000 threshold would receive a flat rebate of $26,250.
Please note that the HST applies mainly to new housing. For the most part, resale properties purchased will not be subjected to HST. There are cases that a resale home would be subject to HST, (such as if the home is extensively renovated, etc) please check with the Canada Revenue Agency at 1-800.959.8287 for further information.
Download a 2-page guide regarding HST changes. CLICK HERE TO OPEN THE REPORT