TORONTO - March 21, 2011
Estate Board President, Bill Johnston, today released a video explaining to prospective
buyers the facts about the HST and the housing market.
The video highlights the fact that there is no HST on the purchase price of resale homes.
Sales tax did not apply to the purchase price of resale homes under the previous PST, and
it does not apply under the HST.
For new housing, additional tax only applies to the portion of the price above $400,000.
The Ontario Enhanced New Housing Rebate means that buyers of new homes receive a
rebate of up to $24,000 regardless of the price of the new home. Buyers of new homes
priced up to $400,000 (about three-quarters of new homes built in Ontario) on average
pay no more - and possibly even less - tax than under the previous PST, where sales tax
was hidden in the price.
"Buying a home is one of the most important investments a person will make in their
lifetime. That's why I'm pleased to be working with TREB to provide information about
purchasing a home in Ontario."
- Minister of Revenue Sophia Aggelonitis
"REALTORS® are happy to help inform the public about the HST. It is important that
the public understands that HST does not apply to the purchase price of a resale home."
- Bill Johnston, President, Toronto Real Estate Board
QUICK FACTS
The HST does not apply to the purchase price of resale homes.
Sales tax did not apply to the purchase price of resale homes under the previous PST.
In addition to not having HST on resale homes, a refund of Land Transfer Tax of up
to $2,000 is available to first-time home buyers of resale homes.
LEARN MORE
Watch the video at http://www.youtube.com/trebchannel or
http://www.rev.gov.on.ca/en/taxchange/homebuyers.html
Get the full list of what's taxable under the HST and what's not at
http://www.rev.gov.on.ca/en/taxchange/taxable.html
Learn more about the HST and Ontario's Tax Plan for Jobs and Growth at
www.ontario.ca/taxchange
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