Buyers of new homes in Ontario will be affected by the province’s proposal to harmonize its retail sales tax with the federal goods and services tax. As a result, new homes in Ontario that are subject to GST (5%) will become subject to the provincial component of the HST (8%) as well.
Ontario recently released transitional [...]
On November 25th people were not in line waiting for Santa Claus, people lined up for days and weeks for the new X2 project located at Jarvis and Charles St.
The Real Estate market has become less and less of a friendly place, Realtors are pricing their sellers, listings below their actual value which in turn leads to a multiple offer situation, leaving the poor buyer out in the cold.
In October 2009, Greater Toronto REALTORS 8,476 sales, up 64 per cent from October 2008. The average price for October transactions was $423,559 – up by 20 per cent compared to the same month last year.
Tips for Buyers
In a competing offer situation, buyers may be tempted to offer more for the property than they planned to and/or remove conditions from offers that are intended to protect them.
Before participating in a competing offer situation, buyers should consider factors such as:
The biggest story in the Toronto condo market over the past 6 months has been the disparity between supply and demand. Simply put, inventory (condos available for sale) is at an all time low, and demand is at an all time high. This has been a recipe for rapid price appreciation, frenzied buying, and sellers very much in control of negotiations.
Starting July 1, 2010 Ontarians can expect to pay a harmonized sales tax (HST) rate of 13% on a long list
goods and services that were previously exempt from the 8% Provincial Sales Tax (PST). While the impact of the tax will be felt by all Ontarians, the province’s 3 million homeowners and the thousands who buy and sell a home every year will be hit particularly hard by this latest tax grab. … Continue Reading
Buyers of new homes in Ontario will be affected by the province’s proposal to harmonize its retail sales tax with the federal goods and services tax. As a result, new homes in Ontario that are subject to GST (5%) will become subject to the provincial component of the HST (8%) as well.
Ontario recently released transitional rules for some new housing transactions that will straddle July 1, 2010, the effective date of the harmonized tax. Ontario also proposed changes to the new housing rebate announced in its 2009 budget.
Under the enhanced rebate announced on June 18, 2009, the $500,000 threshold to qualify for a rebate will be eliminated. As such, new homes purchased as primary residences across all price ranges will qualify for a rebate of up to $24,000 of the 8% provincial component of the HST.
The rebate will be 75% of the provincial portion of the HST payable on the purchase of a new home, up to a maximum rebate of $24,000 (i.e., $400,000 × 8% provincial component = $32,000 ×75% rebate = $24,000).
New home buyers may also be eligible for the federal GST new housing rebate, which generally equals 36% of the tax paid on the first $350,000 of the purchase price. The amount of the GST rebate is phased out on a straight-line basis for homes priced between $350,000 and less than $450,000.
| Price of Eligible New Home (not including GST or HST) | GST Portion — New Housing Rebate | Ontario Portion — New Housing Rebate | Total Rebates |
| $350,000 | $6,300 | $21,000 | $27,300 |
| $400,000 | $3,150 | $24,000 | $27,150 |
| $450,000 and above | $0 | $24,000 | $24,000 |
Qualified housing includes both newly constructed and substantially renovated homes, co-operative housing, owner-built housing, housing on leased land, mobile homes and modular homes for use as primary residences.
The biggest story in the Toronto condo market over the past 6 months has been the disparity between supply and demand. Simply put, inventory (condos available for sale) is at an all time low, and demand is at an all time high. This has been a recipe for rapid price appreciation, frenzied buying, and sellers [...]
Starting July 1, 2010 Ontarians can expect to pay a harmonized sales tax (HST) rate of 13% on a long list
goods and services that were previously exempt from the 8% Provincial Sales Tax (PST). While the impact of the tax will be felt by all Ontarians, the province’s 3 million homeowners and the thousands who [...]
All owners should have and maintain a comprehensive condo insurance policy to cover damage to their personal possessions as well as to their upgrades and to cover any damage that they might incur to a suite below or adjacent to theirs as a result of an accident, negligence or, as stated in a condo’s declaration [...]