“Most Ontarians confused about HST and resale home purchases”
An Ipsos Reid survey commissioned by the Ontario Real Estate Association (OREA) and released today reveals that fully 56 percent of Ontarians mistakenly believe that the new Harmonized Sales Tax (HST) applies to the full purchase price of a resale home. In fact the HST is only levied on the various transaction fees associated with the purchase of a home that has been previously occupied (i.e. not a newly-built home).
Currently, the average price of an Ontario resale home is around $330,000. Therefore, this confusion leaves the majority of Ontarians wrongly believing that the HST will add more than $40,000 to the transaction cost.
This confusion means that many buyers think the cost of a resale home is tens of thousands of dollars higher than it actually is. For average homebuyers, learning that the HST does not apply to the full purchase price means a $40,000 saving they weren’t expecting.