How does Ontario’s new HST affect a condominium purchase?
How does the HST work for new condo?
The rebate program allows for new homebuyers to receive a significant portion of the HST back. The HST rebate amount varies depending on the new home’s price tag. If a new house or condo is priced under $350,000, you’re eligible to receive a maximum of $30,000 back (36% rebate on the GST portion and 75% on PST).
Do you pay HST when buying a condo?
The Harmonized Sales Tax (HST) was introduced in Ontario on July 1, 2010, combining the federal Goods and Services Tax (GST) with provincial sales tax into a single tax. Buyers pay HST on new units but not on previously owned units. There is no HST on condominium fees.
How much is HST on a new condo in Ontario?
13%
Harmonized Sales Tax in Ontario adds up to 13% of a new home’s purchase price—a total of 5% GST and 8% PST. The rebate program allows for new homebuyers to receive a significant portion of the HST back, but there are maximum amount limits for the rebate.
Is HST included in the price of a new home?
In most cases, the purchase price charged by a builder on a newly built home already includes the HST/GST payable on the sale.
Why does the builder get the HST rebate?
When a buyer purchases a new property, the HST rebate will be assigned to the builder upon closing. The builder then uses the rebate to reduce the purchase cost of the property. This portion of the HST is not added to the property’s purchase price, and the builder will apply for the HST rebate for the property.
How do I claim HST rebate?
You must complete the GST370 Employee and Partner GST/HST Rebate Application form to apply for the rebate:
- Part A: Report your identification information and the tax year.
- Part B: Calculate your rebate amount based on the employment expenses you claimed on the T777 form and the GST/HST rate of your province.
Do you pay HST on resale condos in Ontario?
Resale homes, also known as previously owned homes, are HST-exempt. The price negotiated between the seller and the buyer is the actual price of the home – no need to add that 13%. HST, like GST before it, can only be charged once on any item being sold.
Who pays HST on sale of property?
When applicable, HST will be payable by the Assignor (buyer #1 from the builder) on the portion of the assignment sale price related to the return of deposits (paid to the builder by the assignor/seller) PLUS the gross profit (the difference between the builder price and the assignment price).
Do you pay property taxes on a condo in Ontario?
Yes, condos have property taxes assessed on them the same as townhouses and single-family houses do.
How much is the HST rebate on new homes in Ontario?
The new house HST rebate in Ontario essentially kicks back 75% of the Ontario portion of the HST, up to a new home purchase amount of $400,000. This results in a maximum rebate at a provincial level of $24,000 ($400,000 x 0.08 x 0.75). It is also possible to obtain a federal rebate of up to $6,000.
Is there HST on home purchase in Ontario?
Yes. Since the written agreement of purchase and sale is entered into after June 18, 2009, and both ownership and possession of the house transfer to the purchaser after June 2010, the HST at 13% would apply to the sale.
Who qualifies for HST rebate Ontario?
To receive the GST/HST credit you have to be a resident of Canada for tax purposes, and at least 1 of the following applies, you: Are 19 years of age or older; Have (or previously had) a spouse or common-law partner; or. Are (or previously were) a parent and live (or previously lived) with your child.
Who is eligible for GST new housing rebate?
Eligibility for the GST/HST new housing rebate
purchased new or substantially renovated housing from a builder, including housing on leased land (if the lease is for at least 20 years or gives you the option to buy the land) for use as your (or your relation’s) primary place of residence.
How much are closing costs in Ontario?
Closing Costs When Buying a House in Ontario. A guideline on Average Closing Costs in Ontario ranges between 1.5% to 4% of the Purchase Price, for instance, the closing cost for a property purchase price at $500,000/- would vary between $7,500/- to $20,000/-.
How much does a real estate lawyer cost in Ontario?
between $450 to $1,500
Average Real Estate Lawyer Fees in Ontario for house closing are between $450 to $1,500, depending on the transactions’ complexity. In addition, some real estate lawyers charge an hourly rate between $270 to $450 + HST per hour plus Law Office disbursements.
Who pays closing costs in Ontario?
Closing costs are one-time fees that the real estate buyers must pay when they decide to purchase a property in Canada. These costs include, but are not limited to: land or property transfer taxes, lawyer fees and inspection fees. In most cases, they have to be paid upfront and cannot be rolled into your mortgage.
How much does title insurance cost in Ontario?
around $250
How much is Title Insurance in Ontario? Unlike most insurance policies that you pay every year, title insurance is paid once, upon closing, and valid for the entire time you own that home. The average cost of title insurance in Ontario is around $250 and is purchased through your lawyer.
Is title insurance mandatory in Ontario?
Although the province of Ontario states that title insurance is optional, if you have purchased a home or commercial property in Ontario, it was most likely communicated to you that title insurance needs to be purchased as it is a requirement for any mortgage lender.
Is title insurance worth it in Canada?
It’s a worthwhile investment, given that you only pay the premium once to get cover that lasts the duration of your property ownership. Additionally, title insurance is a requirement with some mortgage lenders.