Posted in Applying for a mortgage - Lisa Alentejano services the interior, BC Mortgages, BCMortgage, Best Rate Mortgages, Canadian Economy, Canadian Mortgage News, Home Buyer Closing Costs, HST, Kamloops Mortgage Broker, Kelowna Mortgage Broker, Mortgage Affordability, Real Estate Market, Salmon Arm Mortgage Broker, Vernon Mortgage Broker

Whats the impact of the HST when buying a home?

What’s the impact of the HST when buying a home?

The BC government’s move to introduce a harmonize sales tax, or HST, that combines the federal and provincial sales taxes into a single 12% will mean increased costs for some homebuyers.

Most importantly, new homes in BC will be subject to the 12% HST. Re-sale homes are not subject to the HST.

According to the BC Real Estate Association, “To offset the increase in costs, the BC Government is offering a partial rebate of the HST for new housing, intending that new homes up to $525,000 should bear no more tax than under the previous PST system. Homes above $525,000 will receive a flat rebate of $26,250. New home sales over $525,000 will be impacted, as buyers will have to pay an additional 7% tax less the $26,250 flat rebate.”

“On November 18, 2009 the provincial government announced the HST transitional rules on housing which includes a threshold increase from $400,000 to $525,000, moving the threshold to above the median new home price in the province.”

The British Columbia Harmonized Sales Tax of 12% HST is also applicable to any costs and fees associated with your property/home purchase including legal/notary fees, real estate commissions and other closing costs.

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