Whether you like it or not, the Harmonized Sales Tax is going to be implemented on July 1, 2010. Here are some keys points for what you need to know if you are a home buyer.
The federal and provincial government will combine the 7% PST and 5% GST into one 12% HST. Generally, if you are planning to buy a new home, the GST rules that currently apply to residential property will also apply under the HST of July 1, 2010.
The good news for home buyers of new detached, attached and condominium apartment may be eligible for the New Housing Rebate if you buy, as your primary residence a:
- New home with land or
- New home with leased land or
- New mobile or floating home or
- Home you buy through shares in a housing co-op or
- Home constructed or substantially renovated (more than 90% by the owner who is the general contractor.
The maximum home price had been $400,000.00 to be eligible. In October 2009, the Real Estate Board asked the government to raise this amount to $700,000.00. The government compromised and has raised the threshold to $525,000.00 for a maximum rebate of $26,250.00. Homes costing more than $525,000.00 will be eligible for a flat rebate of $26,250.00.
For more information on this and various other housing related issues, go to the Real Estate Board of Greater Vancouver, www.rebgv.org.