Here is some great information that was sent to me from Rachel at the Ministry of Revenue about the new HST. It gives you the HST and Real Estate in a nutshell:
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
- new homes
There are also many tax credits and incentives available that benefit homebuyers:
- New housing rebate
- New rental housing rebate
- Providing up to $1,000 for families (including single parents), or up to $300 for single people, in Ontario Sales Tax Transition Benefits.
- Creating the new Ontario Sales Tax Credit that gives each member of your family up to $260 a year.
- Increasing the energy and property tax relief provided to low- to middle-income people by 70 per cent.
- Delivering an additional $500 a year to help senior homeowners pay their property taxes.
For more information about the HST visit ontario.ca.