Across Canada, a number of provinces have combined their Provincial Sales Tax (PST) with the Goods and Services Tax (GST), creating HST, or Harmonized Sales Tax.
Confusion over HST may not be helping you get closer to the home of your dreams. Talk to your REALTOR® if you are confused about HST and its effect on your real estate purchase.
A misguided belief that HST applies to the total purchase price of resale homes means that many buyers think the cost of a resale home is tens of thousands of dollars more expensive than it actually is.
Contrary to public opinion, HST does not apply to to the purchase price of resale homes. It does, however, apply to many of the services associated with purchasing a home. These services include home inspections, appraisals, renovations and repairs, legal assistance, moving labour, and REALTOR® services. It has been estimated that the average home buyer will pay approximately $2,000-$7,500 in HST related to the purchase of a home priced from $280,000 - $1,000,000.
HST does apply to the purchase price of newly constructed homes. Purchasers may qualify for an HST rebate of up to 75% of the provincial portion of the sales tax, to a maximum of $30,000.
For more detailed information about the HST as it applies to home purchases, CLICK HERE.
Don’t let HST stand between you and your dream home
Contact Us if you have any questions or concerns.