Harmonized Sales Tax   &   Real Estate Activity in Ontario

The provincial government intends to combine the 8% Provincial Sales Tax (PST)
with the 5% federal Goods and Services Tax (GST), creating a
13% Harmonized Sales Tax (HST).

Implementation is planned for  July 1, 2010.

When implemented  HST :
         *  will NOT apply to the purchase price of resale homes.

         *  WILL be applied to:
           >  the purchase price of newly constructed houses and condominiums
           >  real estate related services such as moving costs, legal fees, home
               inspection fees and Realtors' Commissions.

Also Condominium Fees will go up on average 7% because most of the components
              of these fees will now bear the HST - e.g. Property Management Services,
              cleaning services, any maintenance such as painting, mechanical repairs,
              landscaping...
              

Proposed Transition Rules for New Housing

Sales of new homes with written Agreements of Purchase and Sale that were entered into on or before June18, 2009 would not be subject to the provincial portion of the HST, even if both ownership and possession are transferred before, on or after July 1, 2010.

For help with your Central Toronto real estate needs,
 call me @ 416-322-8000...
You'll be glad you did!