BC Increases threshold for new BC HST Real Estate purchases

By
Real Estate Agent with Keller Williams Elite Realty, Port Coquitlam, BC 27-01262

The Province is proposing to increase the threshold for the B.C. HST new housing rebate from $400,000 to $525,000 to ensure that, on average, purchasers of new homes up to $525,000 pay no more tax due to harmonization, Finance Minister Colin Hansen announced today.

"We heard the concerns from consumers and industry about how the HST might affect home buyers, and this increase will move the threshold to above the average new home price in the province. At $26,250, this provides the highest maximum provincial rebate in Canada," said Hansen. "A similar rebate will also support the construction or substantial renovation of affordable rental housing."

Purchasers of new homes would be eligible for a rebate of 71.43 per cent of the provincial portion of the HST paid on a new home, up to a maximum of $26,250. Homes above $525,000 would receive a flat rebate of $26,250. This enhanced rebate represents a 30 per cent increase in the threshold and maximum rebate available.

The Province is also proposing transitional rules for new housing. The provincial portion of the HST would not apply to sales of new homes where ownership or possession is transferred before July 1, 2010. In addition, sales of new homes under written agreements of purchase and sale entered into on or before Nov. 18, 2009, would generally not be subject to the provincial portion of the HST, even if both ownership and possession are transferred on or after July 1, 2010.

Although the HST is expected to put a significant damper on new home sales this news is welcomed.

 

Posted by

Scott Leaf - Keller Williams Elite Realty

Real Estate Board of Greater Vancouver

Medallion Presidents Club 2014 Top 1% Homes Sold

Top 100 Realtor Homes Sold 2015-2017

Medallion Club 2010-2017

 

Coquitlam, Port Coquitlam, Pitt Meadows, Maple Ridge, Langley, River Springs and surrounding areas Realtor 


 

 

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Darrell Backen
Darrell Backen 1.855.216.6010 - Vancouver, BC
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Thanks for the update on HST, the Ambassador badge looks great.

Nov 20, 2009 03:17 PM #1
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