HST confusionIt seems homebuyers in B.C. and Ontario still don't quite understand how the newly-implemented HST will affect their next home purchase. According to a recent survey conducted by Royal LePage, 25% of real estate agents said home buyers and sellers have a low level of awareness regarding the HST and real estate transactions. Fifty percent said the HST is the main cause for the cooling housing market - while only 28.4% attributed the slow-down to a change in interest rates. If you're in the market to buy or sell your home, you should be aware that, when it comes to the purchase price, the HST will only apply to that of a newly built home - not a resale property. That being said, many fees, services and commissions associated with closing costs will be subject to the HST. The provincial governments in B.C. and Ontario are offering rebates that cover a portion of the HST cost on new homes. In Ontario, new homes sold for less than $400,000 will qualify for a 6% rebate. In BC, new homes under $525,000 will receive a maximum tax rebate of $26,250.    |
