FAQ INDEX
Mortgages Rates from TD Canada Trust (effective Dec/9/09)
HST Transition Rules
Changes Proposed for HST on New Housing
Harmonized Sales Tax Not Yet in Effect
GTA May Resale Housing Sales Higher Than Last Year
Amended Energy Audit Bill Passed – Not Yet In Effect
HST Transition Rules
December 16, 2009 -- The provincial government has provided rules/guidance on how it will transition to the implementation of the proposed Harmonized Sales Tax.
Background
The provincial government has announced that it intends to combine the eight percent Provincial Sales Tax with the five percent federal Goods and Services Tax, creating a 13 percent Harmonized Sales Tax (HST).
• The HST is NOT YET IN EFFECT. The provincial government has indicated that it intends to bring the HST into effect beginning on July 1, 2010; however, note transition rules below.
• HST will not apply on the purchase price of re-sale homes.
• HST would apply to services such as moving cost, legal fees, home inspection fees, and REALTOR® commissions.
• HST will apply to the purchase price of newly constructed homes. However, the Province is proposing a rebate so that new homes across all price ranges would receive a 75 per cent rebate of the provincial portion of the single sales tax on the first $400,000. For new homes under $400,000, this would mean, on average, no additional tax amount compared to the current system.
Source: Toronto Real Estate Board
Changes Proposed for HST on New Housing
June 19, 2009 -- The provincial government has announced some proposed changes to the way it would apply the proposed Harmonized Sales Tax (HST) to the purchase price of newly constructed housing. The provincial government has also announced proposed transitional details for newly constructed properties.
Background
The provincial government has announced that it intends to combine the eight percent Provincial Sales Tax with the five percent federal Goods and Services Tax, creating a 13 percent Harmonized Sales Tax (HST).
• The HST is NOT YET IN EFFECT. The provincial government has indicated that it intends to bring the HST into effect beginning on July 1, 2010.
• HST will not apply on the purchase price of re-sale homes.
• HST would apply to services such as moving cost, legal fees, home inspection fees, and REALTOR® commissions.
Proposed Changes for New Housing Rebate
HST will apply to the purchase price of newly constructed homes. Originally, the provincial government indicated that it would provide a rebate to ensure that, on average, new homes under $400,000 would not be subject to an additional tax burden. Homes priced between $400,000 and $500,000 would be eligible for a portion of the rebate, and homes priced above $500,000 would be subject to the full HST. However, the provincial government is proposing some significant enhancements to these rebates, as follows:
• Enhanced new housing rebate - The province is proposing to enhance the new housing rebate so that new homes across all price ranges would receive a 75 per cent rebate of the provincial portion of the single sales tax on the first $400,000. For new homes under $400,000, this would mean, on average, no additional tax amount compared to the current system.
• New rental housing rebate - Similar to the enhanced new housing rebate, the province is proposing a rebate for new residential rental properties. This proposed rebate would support affordable rental housing across Ontario.
Proposed Transitional Rules for New Housing
The province is also proposing transitional rules for new housing. Generally, as part of the transitional rules, sales of new homes under written agreements of purchase and sale entered into on or before June 18, 2009 would not be subject to the provincial portion of the single sales tax, even if both ownership and possession are transferred on or after July 1, 2010. The tax would also not apply to sales of new homes under written agreements of purchase and sale entered into after June 18, 2009 where ownership or possession is transferred before July 1, 2010.
More Detail
Additional detail on the proposed enhancements to the new housing rebate, rental housing rebate, and new housing transition rules is available from the Provincial Government http://www.rev.gov.on.ca/english/notices/str/02.html .
Source: Toronto Real Estate Board
http://communications2.torontomls.net/newstand/news/2009/mn0906/hst_changes.htm
Harmonized Sales Tax Not Yet in Effect
June 10, 2009 -- The provincial government has announced that it intends to combine the eight percent Provincial Sales Tax with the five percent federal Goods and Services Tax, creating a 13 percent Harmonized Sales Tax (HST). The HST is NOT YET IN EFFECT. The provincial government has indicated that it intends to bring the HST into effect beginning on July 1, 2010. Details regarding any implementation transition rules have not been provided by the provincial government.
Background
• HST will not apply on the purchase price of re-sale homes.
• With regard to newly constructed homes, the provincial government has indicated that it will provide a rebate to ensure that, on average, new homes under $400,000 would not be subject to an additional tax burden. Homes priced between $400,000 and $500,000 would be eligible for a portion of the rebate (detail not yet provided by government), and homes priced above $500,000 would be subject to the full HST.
• HST would apply to services such as moving cost, legal fees, home inspection fees, and REALTOR® commissions.
Additional information will be provided as it becomes available.
Source: Toronto Real Estate Board
http://communications2.torontomls.net/newstand/news/2009/mn0906/hst_update.htm
GTA May Resale Housing Sales Higher Than Last Year
TORONTO, June 3, 2009 - In May 2009, Greater Toronto REALTORS® reported 9,589 sales, up almost two per cent from May 2008 – the first annual increase since December 2007. The seasonally adjusted annual rate of sales in May was 81,300.
“The resale housing market in the GTA has remained resilient in the face of challenging times globally,” according to TREB President Maureen O’Neill. “Many home buyers have taken advantage of extremely low mortgage rates.”
The average price for May transactions was $395,609 – down less than one per cent compared to the same month last year.
“The average resale home price has moved in line with last year’s level because of tighter market conditions experienced this Spring,” stated Jason Mercer, TREB’s Senior Manager of Market Analysis. “Home sales have increased strongly relative to new listings, bolstering home prices.”
Source: Toronto Real Estate Board
For a complete copy of the Market Watch Report visit www.TorontoRealEstateBoard.com
Amended Energy Audit Bill Passed – Not Yet In Effect
May 25, 2009 -- Provincial legislation, Bill 150, making home energy audits mandatory for home sellers, unless waived by buyers, has been passed; however, the Bill’s requirements regarding home energy audits are NOT YET IN EFFECT and are not expected to take effect until 2010.
Background
As originally proposed, Bill 150 would have required home sellers to provide information, through standardized energy audits, about the home’s energy efficiency to a buyer before they could sell the property to them. After TREB and OREA worked to raise concerns about this proposal, Bill 150 was amended to allow buyers to waive this requirement.
Next Steps
Now that Bill 150 has been passed, the Ministry of Energy and Infrastructure is working on preparing regulations that will outline the details on how the home energy audit requirement will be implemented. The home energy audit requirement will not take effect until these regulations are finalized, expected in 2010. TREB and OREA expect to work with the Ministry of Energy and Infrastructure to provide input on the regulations.
REALTOR® Efforts
REALTORS® have been instrumental in voicing concerns on this issue to the provincial government. In recent months, OREA coordinated a Call For Action from REALTORS® and the public, which resulted in thousands of emails, pointing out concerns, to the Minister and MPPs. TREB has coordinated this Call For Action with TREB Members, who have played a very significant role. Other TREB and OREA efforts have included:
• Meeting with the Minister of Energy and Infrastructure
• Meeting with key Ministry policy staff
• Meeting with the Premier’s office
• Meeting with key Opposition Party MPPs
• Presentation to Legislative Committee
• Media relations efforts that have generated significant public attention and coverage of REALTOR® views
Source: Toronto Real Estate Board
For a complete copy of the Market Watch Report visit www.TorontoRealEstateBoard.com
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