The Definitive Guide: How the HST Really Affects Realtors
Posted by: admin in Realtors, Ontario, Canadian Real Estate, British Columbia on Aug , 2010
To say the HST has upset realtors and real estate professionals would be a bit of an understatement. They’re mad. According to a recent survey conducted by Royal Lepage, 43.9% of realtors felt that the HST was playing a big part in the cooling housing market.
Who could blame them? Both Vancouver and Toronto, the biggest markets in the provinces where HST has gone into affect have seen big downturns. In Toronto, sales fell 34% in July, to sit at their lowest point since 2002. The drop was even sharper in Vancouver, with a 45% drop in home sales.
However, the question remains for many people – how does the HST affect me? Both the BC and Ontario provincial governments are quick to point out that previously owned homes are exempt from the HST – it only applies to new construction over a certain price point. However, the story isn’t so simple. The HST affects people looking to buy and sell their home in a lot of different ways – from realtor’s commissions to the materials used to do repairs.
So – how does the HST really affect real estate – from top to bottom? We made you a chart of all the changes because of the HST. If the price stayed the same, it’s not on the chart – we’ve only listed products and services that will be more expensive now.
|
Service |
Previous Tax |
BC Tax + HST |
Ont Tax + HST |
Notes |
|
House Cleaning Services |
5% |
12% |
13% |
|
|
Electricity and Heating |
5% |
N/A |
13% |
Only subject to HST in Ontario |
|
Home Service Calls – ie, plumbers, carpenters, electricians, etc. |
5% |
12% |
13% |
Applies to repairs for both appliances and property |
|
Landscaping/Snow Removal |
5% |
12% |
13% |
In BC Fruit trees and food plants are also now subject to HST, but not ornamental plants |
|
Home Renovations |
5% |
12% |
13% |
|
|
Ontario – new homes/condos over $400,000 |
5% |
- |
13% |
Property under $400,000 is exempt |
|
BC – new homes/condos over $525,000 |
5% |
12% |
- |
Property under $525,000 is exempt |
|
Real Estate Commissions |
5% |
12% |
13% |
|
|
Windows, insulation, weather stripping, caulking |
5% |
12% |
N/A |
|
|
Movers |
5% |
12% |
13% |
|
|
Interior Design Services |
5% |
12% |
N/A |
|
|
Accounting Services |
5% |
12% |
N/A |
|
