there is no HST on the purchase price of a resale unit (i.e. the purchase is not a brand new construction home or condo)
there will be HST on the fees charged by service providers such as your lawyer, conveyance fees and home inspections
Assuming your total cost for services such as legal, conveyance,and home inspection is a total of $2000. HST will effectively increase your costs by $160*
bottom line - the additional costs are minimal
2) For New Construction
For a purchase up to $400,000, you will still pay 5% (GST) which is generally included in the purchase price by the builder but there will be no additional HST
For a purchase over $400,000 you will still pay the 5% (GST) and you will also pay HST on the amount that exceeds $400,000.
Some new property purchased before July 1, 2010 may be assessed a portion of the HST if applicable, depending on when it was purchased and/or when it is scheduled to close - check with the builder.
Note - If you are planning to sell your new construction property immediately after possession, or through assignment before taking possession. you could be liable to pay the HST on the selling price - check with your accountant and/or lawyer.
* I provide many services such as legal fees and home inspections free to my clients. Contact me for more information about my Cash Back program.
