There is so much to think about when you are purchasing a home. It is not something that you do every day so at times it can feel a bit overwhelming. Most people want to get a handle on all the costs associated with buying a home. One cost that is often misunderstood is HST. Do I pay HST on the purchase of a home is a question that could be on your mind. The big hefty tax HST has been with us now for some time. Even so, many buyers are confused on HST and Purchasing a Home – when do they pay it and when do they not. There is good news here. You do not pay HST when you purchase a resale home. You also don’t pay HST on rents or condo fees when you own a condo.
That’s where the good news stops. You do pay HST on the purchase of a new home. However, homebuyers can claim a rebate for a portion of the provincial tax for home with a purchase price under $500,000. Many builders also may include the HST is the cost of the home. It is buried but it is still there.
You also pay HST on all lawyers fees, any any fees that you incur in doing a pre purchase home inspection.
This is some good information to know so that you can properly calculate all the costs in buying your dream home.
If you would like more clarification or any other help with your real estate, Jody can help. Please click on the link below to get in touch with him directly. Contact Jody