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Financing, Mortgages and Insurance What options are best for you and your situation?


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  #51  
Old 2007-11-09, 10:51 PM
Visitor6% Visitor6% is offline
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That being said, I have a lot of sympathy for that situation. However, as you know, the rules in this case (Transitional Rebate and applicable GST rate) are essentially there to ensure that, where binding agreement has been negociated, purchasers are the ones (not builders) benefiting from the rate reduction.

Last edited by Visitor6%; 2007-11-10 at 09:09 AM.
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  #52  
Old 2007-11-13, 11:39 AM
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Originally Posted by patrob View Post
I talked to 2 government reps when I called 2 separate times & both said the total price MUST be on the purchase agreement & even the form states that... My upgrades were not on that agreement.

Why do you say the person was wrong , since this is what they do on a daily basis & I am sure were trained on this topic & prepared for such questions & they have to provide you with the right answer...
They must be monitoring this forum!

See question 15 on page 20. Was not included in the Qs & As they published in 2006.

http://www.cra-arc.gc.ca/E/pub/gi/no...otice226-e.pdf

" 15. After entering into a written agreement of purchase and sale for a residential complex in September 2007, the purchaser requests that the builder upgrade the flooring on the main floor to hardwood. The amount payable for the upgrade is not included in the written agreement of purchase and sale, nor is an addendum to that agreement made in respect of the upgrade. The builder issues a separate invoice for the upgrade on February 12, 2008, and the purchaser pays the amount directly to the builder on the following day. Both ownership and possession of the residential complex will be transferred in April 2008. Do the new rates of tax apply to the additional amount payable for the upgrade?

The additional amount the builder charges for the upgrade is an additional amount payable for the residential complex. Although the purchase and sale agreement is not actually modified, the upgrade nonetheless forms part of the single supply of the residential complex made by the builder, as the builder is not making a separate supply of hardwood flooring. Since the written agreement of purchase and sale was entered into after May 2, 2006, and on or before October 30, 2007, 6% GST or 14% HST will apply on the total amount payable for the residential complex, including the amount payable for the upgrade.

Where both ownership and possession are transferred on or after January 1, 2008, the purchaser may claim a GST/HST 2008 transitional rebate. When determining the amount of the transitional rebate, the total amount paid for the complex includes the additional amount paid for the upgrade. A transitional rebate is not available if either ownership or possession is transferred before January 1, 2008.
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  #53  
Old 2007-11-14, 03:34 PM
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Originally Posted by patrob View Post
So are you then saying that if the offer was accepted by the builder Nov. 2, then that's the date you go by & not when you signed the offer which was Oct. 26

I think it's the date that you sign the offer that counts & that's the real purchase date...
A bit more thinking on this issue. Technically, you can have an agreement entered into before the official written agreement of purchase and sale. As such, if builder’s acceptance was only a formality (i.e., offer was at the builder stated price (or even at the verbally negotiated price) and at the builder’s condition or verbally negotiated conditions) you might / potentially could / have an agreement entered into before the “formal” acceptance.

Last edited by Visitor6%; 2007-11-14 at 03:36 PM.
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  #54  
Old 2007-11-14, 04:35 PM
MaxJay MaxJay is offline
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I'm going to go out on a limb here and say that the date stated on the Agreement of Purchase and Sale is the date that both parties are bound to.

In our case we went into Mattamy's office some time early in August (3rd or 4th I think). We had a week to review the offer with our lawyer and to provide proof of financing. The ammendments from our review were accepted by Mattamy on August 8th, but the date on our agreement was August 9. This is the date that Mattamy's people signed the agreement and gave it back to us.

I thought a "real-life" example may help.
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  #55  
Old 2007-11-20, 01:58 PM
Radiant3 Radiant3 is offline
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Wow, thanks for all the information...
But since we paid cash for our upgrades no taxes were charged.
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  #56  
Old 2007-11-20, 02:52 PM
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Quote:
Originally Posted by Radiant3 View Post
Wow, thanks for all the information...
But since we paid cash for our upgrades no taxes were charged.
Which technically makes you not qualify for a GST Transitional Rebate at all!
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  #57  
Old 2007-11-20, 03:01 PM
MaxJay MaxJay is offline
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The prices that are in the Mattamy design books include the GST. If you built with Mattamy you did pay taxes for your upgrades (unless they back-calculated all of the GST out of the prices).

We specifically asked Mattamy about the details for all three payment options on upgrades and were explicitly told that the same prices (including GST) applied to all thee options. If you were charged differently please let us know as we would like to follow up on that with Mattamy. Waving a couple thousand dollars in taxes shouldn't be done in an ambiguous manner.
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  #58  
Old 2007-11-20, 03:14 PM
patrob patrob is offline
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Quote:
Originally Posted by Visitor6% View Post
They must be monitoring this forum!

See question 15 on page 20. Was not included in the Qs & As they published in 2006.
Maybe they are or perhaps so many people were calling & asking about their upgrades if they are included in the rebate

I might just ask them to re-assess my rebate...
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  #59  
Old 2007-11-20, 04:43 PM
gizmo gizmo is offline
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Two articles from the Toronto Star that might help answer some questions about the rebate(s)

http://www.thestar.com/article/274627

http://www.thestar.com/article/276542

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  #60  
Old 2007-11-20, 04:52 PM
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Quote:
Originally Posted by gizmo View Post
Two articles from the Toronto Star that might help answer some questions about the rebate(s)

http://www.thestar.com/article/274627

http://www.thestar.com/article/276542

Laurie
In the second article, the following Q&A should have been responded differently:

Q: I was wondering if home additions are affected by this Oct. 30 date?

A: Sorry, renovations do not qualify (99.9 times out of 100).


In the case of a major addition, even if it does qualify for a Standard GST New Housing Rebate (see CRA's policy), you're not buying a new home (building and land) and the October 30, 2007, date is therefore not relevant. Same answer if you're getting a home built but you already own the land - October 30, 2007 date is not relevant and no Transitional Rebate is available.
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