New Home Purchase Includes HST

The Harmonized Sales Tax (HST) and how it affects homebuyers

I just wanted to follow up with you today to provide this link to our new "Buying a home? Get the facts on HST" bilingual real estate fact sheet.

To make it easier for you to provide information on the HST and how it affects homebuyers, we created this document for you to simply print off and hand out to your clients and other interested parties.

Did you know?

About 93 per cent of all homes sold in Ontario are not subject to an additional tax amount under the HST.

It’s important to note, the HST is not charged on resale homes.

In addition it is not charged on:

home insurance
mortgage interest costs

HST is charged on:

real estate commissions
legal fees

For the entire list of what's taxable under the HST and what's not, please visit http://www.rev.gov.on.ca/en/taxchange/pdf/taxable.pdf. This list is also available for download, as a free mobile application.

And of course, you can visit our website for more information on the HST at www.ontario.ca/taxchange (en) or www.ontario.ca/modificationfiscale (fr).


Rachael, Ontario Ministry of Revenue

Contact Stan Gelman at 905 270 5110 or email sgelman.sglaw@rogers.com

http://wiselawyer.ca

Make Sure you Cap the Closing Costs

Many new home and condo Agreements of purchase contain hidden or unspecified charges that change prior to closing.

Charges that I have seen recently include;

Hydro Meters, Land Tax of $75, Hydro Installation $630, Security Deposit $500, New Home Warranty Program $734, Water Meter $390, Electronic Registration $ 175, Law Society Levy $52.50, tree planting or park land dedication that could be thousands.

These are in addition to the normal land transfer taxes that apply in a purchase. The 416 and 905 have separate Land Transfer Taxes. Rebates may be available for First Time Buyers.

Bring your contract in for a review during the conditional upon a solicitors review period and all these details can be explained to you. The Builders Lawyers will be contacted and appropriate revisions made.

Contact my office at 905 270 5110 or email Stanley Gelman sgelman.sglaw@rogers.com Check our website Wise Lawyer.ca or possibly you have a question. Add your question here.