There is quite a bit of confusion currently in regards to what HST applies to when buying a property.
HST applies to NEW properties only . The is no HST on the purchase of a home that has been previously lived in.
There is HST payable on the purchase of a building lot at 12% and a rebate can be claimed when the house is complete if the final value qualifies.
On the purchase of a NEW home in the $350,000 range the HST after rebates is about 5.2% and for a property in the $465,000 range it is about 7% after rebates.
There is HST payable on service fees for lawyer/notary, building inspectors fee and also on real estate commisions when you are selling. These are all at 12%
It appears the HST will be with us until the second quarter of 2013 and the goverment has not provided anyone with a transitional plan.
The Pearce Team
Let's discuss your next home sale or purchase, with no obligation.
11933 - 224th Street, Maple Ridge, B.C. V2X 6B2
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