Buying a Home? Get the Facts on HST

Consumers buying a resale home do not pay HST on the purchase price of the home.

In addition to not having HST on resale homes, a refund of Land Transfer Tax of up

to $2,000 is available to first-time home buyers of resale homes.

On the other hand, if you are buying a newly constructed home, HST will apply.

Enhanced new housing rebate:The new housing rebate would be enhanced so that new homes purchased as primary residences across all price ranges would receive a rebate of up to $24,000, while continuing to ensure that, on average, new homes priced up to $400,000 would not be subject to additional tax compared to the retail sales tax (RST) currently embedded in the price of new homes. For new housing, additional tax only applies to the portion of the price above $400,000.

Qualifying housing would include substantially renovated housing, co-operative housing, owner-built housing, housing on leased land, mobile homes and modular homes for use as primary places of residence.

Quick fact: 75 per cent of new homes sold in Ontario are under $400,000 and would not be subject to an additional tax amount, on average, compared to the current retail sales tax (RST) embedded in the price of new homes.