Agent Blogs

On July 1, 2010, the Ontario government is set to introduce a federally administered Harmonized Sales Tax (HST) that will apply to most purchases and transactions.

The HST will apply to newly constructed homes, but will not apply to resale homes. Buyers of new homes will receive a rebate of up to $24,000 regardless of the price of the new home.
 

It is worth reiterating The HST will not apply to resale homes.

Enhanced New Housing Rebate

Buyers of new homes will receive a rebate of up to $24,000 regardless of the price of the new home. This rebate ensures that buyers of homes priced up to $400,000, which account for approximately three-quarters of new homes built in Ontario, will, on average, pay no more - or possibly even less - tax than under the PST system.

Services

The new HST will be applicable to the provisions of most services associated with the purchase/sale of a new home including home inspections as well as the majority of utilities that are supplied to homes and paid by home owners.

Transitional Rules

For some purchases of new homes that straddle the implementation date of July 1, 2010, the provincial portion of the HST will not apply, depending on when the written agreements of purchase and sale were entered into and when ownership or possession are transferred.
 

Some of the above information provided by the Ontario Ministry of Finance.