There’s lots of confusion about how HST will affect all kinds of purchases. Here’s a short explanation of its impact on a real estate transaction:
The HST will have more of an impact on new construction home sales over $400,000, as the purchase price of these homes will be subject to HST. The effect on resale homes is less – as the HST applies to the services portion Whether you’re a buyer or a seller, here’s what HST will mean to you on a resale transaction. Buyers and sellers will face an additional tax on lawyer fees, moving costs, REALTOR® commissions, home inspection fees and title insurance. For example, the closing costs to purchase a single detached house priced at $302,354 would be about $1449 higher because of the new HST.