Revenue Minister Sophia Aggelonitis and Ontario Real Estate Association Immediate Past President, Dorothy Mason, 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 HST.
For new housing, additional tax only applies to the portion of the price above $400,000.
The Ontario Enhanced New Housing Rebate means the 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 OREA to provide information about purchasing a home in Ontario."
—Minister of Revenue Sophia Aggelonitis
"A resale home costs tens of thousands of dollars less than many Ontarians think because HST does not apply to residential resale transactions."
—Dorothy Mason, Immediate Past President, Ontario Real Estate Association
- 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.
Watch the video www.ontario.ca/taxchange or www.youtube.com/oreagr.
Learn more about the HST and Ontario's Tax Plan for Job and Growth at www.ontario.ca/taxchange.