HST TAX will take effect on

July 1, 2010.

The HST tax combines the Provincial Sales Tax of 8% percent with the Federal GST Tax of 5% percent, to create a new "HARMONIZED" total tax of 13% percent. This new tax will be applicable to many real estate services.

 WHAT DOES THIS MEAN TO A BUYER OR SELLER OF RESALE HOMES?

There is no HST Tax Payable On The Purchase Price of a Residential Resale Home!!!!!

There are a lot of people, including some realtors who have been misinformed. There was never GST on the purchase price of resale homes. Therefore, HST is not applicable. So if your purchase price is $350,000. It’s $350,000.

However, under the HST, home buyers and sellers will have to pay extra tax on a range of SERVICES associated with the real estate transaction: services such as legal fees, moving costs, real estate commissions and home inspection fees. Currently, consumers only pay the 5% GST on these services.

In a nutshell, after July 1, 2010, if you are a SELLER, there will be a 13% percent tax payable on the real estate commission you pay. Your lawyer's fee will also be subject to the 13% percent HST, as will the cost of a Condominium Status Certificate.

If you are a BUYER any Home Inspection you pay for will be subject to the 13% percent HST. And so will the cost of movers hired. In addition, the cost of the CMHC   premium for "high-ratio" mortgages has traditionally been taxable for PST - this amount will now be taxable for the full 13% percent HST. In most cases, sellers pay the commission associated to your realtors fees.

For more informnation on the HST, click here!

 If you have been contemplating making a move this year, there are a lot of great homes on the market. Including my featured homes for sale at:

3 Murray Crt, Orangeville                            

40 Meadow Drive, Orangeville

117 Oakridge Drive, Orangeville

Please call or email me to set up a appointment!