Here are the new HST rules in BC that will be coming out later this year. It’s not as confusing as you may think. First off, if you’ve purchased a home, then you know that you don’t currently pay GST when you buy a home that’s been previously lived in. This means one house that’s had one previous owner, is now an old house and no longer requires GST to be paid. The HST rules will only apply to brand new homes, homes that have never had anyone else reside in it.
For those of you that don’t know, the HST rule comes with a rebate clause on the PST portion only. The rebate is only for 71.43% of the PST, with GST being paid in full. The maximum rebate for a $525,000 purchase will receive a total of $26,250. If your home is $1 more, there will be no rebate.
Basically if you were to purchase a new home prior to the HST rule being implemented on July 1st, 2010 a $500,000 home with just GST will cost approximately $10,000 less than a home that is charged HST.
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