News

HST / GST TRANSITION

As of April 1st, we have converted from HST to GST.  If your Real Estate Purchase would have had HST applicable prior to April 1st, these are the changes for Real Estate transactions;
PRIOR TO APRIL 1, 2013
- 12% HST
- Full rebate on price up to $850,000 for Home owners, Investors, Recreational Property
- Rebate capped at $42,500 for homes over $850,000
AFTER MARCH 31, 2013
- 5% GST and possible 2% Transition Tax
Possible rebate of 36% of GST paid
- Full rebate if price up to $350,000, no rebate after $450,000
- Rebate is for Home owners, Investors.  Do not think it applies to Recreation property but recommend discussing with your lawyer/accountant.
TRANSITION TAX
- 2% of price, no rebate
- Applies if a  house is more than 10% complete on April 1, 2013
- If ownership changes before April 1, 2015
REALTOR COMMISSION
-  It doesn’t matter what the date of the Listing contract is, if the Completion Date of the Sale is after April 1, 2013 the commission is subject to 5% GST and not 12%HST.
A considerable savings  !