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Andrew Mckay
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How Will The New HST Affect Home Buyers?
Benjamin Franklin quoted “but in the world nothing can be said to be certain except death and taxes.”
I resist the temptation to tell the joke about “death and nurses.” 
HST is a combination of the current GST of 7% + Provincial Sales Tax of 8%, that is to say a 15% tax.
How will the new HST due on July 1st affect home buyers? It all depends if you are buying a resale or new home. Resale homes are not subject to HST BUT services that are part of the Home Buying process are:
Home Inspection, Appraisal, Real Estate Fees, Legal Fees, Moving costs etc are currently only taxed at 7% GST. Starting July 1st these services will all be taxed at 15%.
Buyers of new homes will have to pay the full 15% on the purchase price in addition to the increase in the cost of services mentioned above. There are however rebates available. As always with tax issues and when the government are involved this is not straight forward. Initially the rebate ensures that buyers of homes priced up to $400,000 will, on average, pay no more tax than under the PST system. I question how long this will last. Not due to any knowledge of the governments plan but more a cynical view that if the powers that be can raise taxes and revenue they will.
The very fact that it is the Ministry of Revenue that explains the rebate should tell us all something.
