HST and Real Estate

There is quite a bit of confusion currently in regards to what HST applies to when buying a property.

HST applies to  NEW  properties only . The is no HST on the purchase of a home that has been previously lived in.

There is HST payable on the purchase of a building lot at 12% and a rebate can be claimed when the house is complete if the final value qualifies.

On the purchase of a NEW home in the $350,000 range the HST after rebates is about 5.2%  and for a property in the $465,000 range it is about 7% after rebates.

There is HST payable on service fees for lawyer/notary, building inspectors fee and also on real estate commisions when you are selling. These are all at 12%

It appears the HST will be with us until the second quarter of 2013 and the goverment has not provided anyone with a transitional plan.


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