Home buyers and even some new home builders and renovators could be under the impression that any contracts entered into before July 1 will not be affected with HST.
Not so!
Here are some key points to understand:
- Determining whether HST applies to a new home purchase is based on the date of transfer of ownership or possession.
- The amount of the HST depends on the price of the home. For homes under $400,000 HST will apply. Currently every home has a provincial tax of 2% included.In Ontario, there is the Ontario Housing Rebate so you may not see an increase in tax on new homes, there will still be the same 2%
- If construction of a house is 85% complete on July 1, a rebate of 85% of the 2% would be payable.
Sound confusing? Watch for a simplified explanation and a few examples that I will post over the next few months. In the meantime, feel free to contact me and I will try to un-confuse you ,( I don't know if there is such a word as un-confuse, but what the heck, if the beaurocrats can create confusion, so can I)
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