Go Back   BuildingHomes.ca - Building your community! > General > Financing, Mortgages and Insurance

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


Reply
 
Thread Tools Display Modes
  #31  
Old 2009-03-25, 07:34 PM
davyfink davyfink is offline
Junior Member
Regular User
 
Join Date: Feb 2009
Location: Aurora
Posts: 21
Default

I got it from citynews.

I also heard about the $400,000 exemption as well as a few other exemptions.
Reply With Quote
  #32  
Old 2009-03-25, 08:38 PM
Mark & Lynda Mark & Lynda is offline
Senior Member
Regular User
 
Join Date: Feb 2006
Location: Stouffville
Posts: 2,620
Default

Quote:
Originally Posted by kaydy View Post
Here is what I heard on 680 NEWS. Tomorrow, the province would announce they have agreed to harmonize the tax and this process will take couple of months. Certain things will be exempted and the worse news for most of us is that new home purchases would be exempt under $400,000.00.
The big question is would this 400K exemption be constantly reviewed and increased as housing prices increase? A home under 400K today may be well over 400K in 5 years from now. 400K does not include a lot of homes nowadays anyhow. Maybe it should really be 600K.

And this quote..."The Ontario Chamber of Commerce insists you'll benefit by the change, noting on its website that if businesses save money on taxes, they'll be able to pass that on to you, resulting in lower prices and better paying jobs"

I'm not holding my breath for lower prices. If they insist it's to lower costs which will lower prices, why not just leave it the way it is and don't lower prices?
__________________
Mark
Reply With Quote
  #33  
Old 2009-03-25, 08:49 PM
S and B S and B is offline
Senior Member
Regular User
 
Join Date: Apr 2008
Posts: 382
Default

Quote:
Originally Posted by davyfink View Post
I got it from citynews.

I also heard about the $400,000 exemption as well as a few other exemptions.
Is it a bad assumption then that for those with houses above $400K, they would only need to pay for the amount they are above? So for a $500K house, only $100K would be taxable?

I don't think it would be fair otherwise....
Reply With Quote
  #34  
Old 2009-03-25, 08:57 PM
saw_mui saw_mui is offline
Senior Member
Regular User
 
Join Date: Oct 2008
Location: Ontario
Posts: 314
Default

Quote:
Originally Posted by S and B View Post
Is it a bad assumption then that for those with houses above $400K, they would only need to pay for the amount they are above? So for a $500K house, only $100K would be taxable?

I don't think it would be fair otherwise....
i'm sure if that happens it won't be the difference...

it should be the cost of the house (this means you gotta remove the GST that is included on it to know what the 'actual' cost is).

I don't believe 400,000 is a realistic number - houses in and around the GTA sell a lot more than that even through a builder.

citynews is guessing it would be effective jan 1, 2010
"If the harmonization comes in as expected, there won't be an immediate spike. It will take some time to create the new tax and it's expected it could be in place by January 1, 2010."
Reply With Quote
  #35  
Old 2009-03-25, 09:00 PM
S and B S and B is offline
Senior Member
Regular User
 
Join Date: Apr 2008
Posts: 382
Default

Yeah, I am guessing the same...that it won't be the difference...but the full price instead.

But just imagine your that neighbour bought a home that cost them $395000 and didn't have to pay the extra tax, but your home came to $405000, but you had to pay tax on the full amount. Not exactly fair...
Reply With Quote
  #36  
Old 2009-03-25, 09:08 PM
saw_mui saw_mui is offline
Senior Member
Regular User
 
Join Date: Oct 2008
Location: Ontario
Posts: 314
Default

Quote:
Originally Posted by S and B View Post
Yeah, I am guessing the same...that it won't be the difference...but the full price instead.

But just imagine your that neighbour bought a home that cost them $395000 and didn't have to pay the extra tax, but your home came to $405000, but you had to pay tax on the full amount. Not exactly fair...
I don't find it fair at all to have the taxes merge...

this is killing the new contraction market even more!!!!!

as if it not dead enough lately......
Reply With Quote
  #37  
Old 2009-03-25, 10:15 PM
sarcol27 sarcol27 is offline
Senior Member
Regular User
 
Join Date: Sep 2008
Posts: 486
Default

Quote:
Originally Posted by saw_mui View Post
i'm sure if that happens it won't be the difference...

it should be the cost of the house (this means you gotta remove the GST that is included on it to know what the 'actual' cost is).


citynews is guessing it would be effective jan 1, 2010

"If the harmonization comes in as expected, there won't be an immediate spike. It will take some time to create the new tax and it's expected it could be in place by January 1, 2010."
OK..so if they remove the GST and the total price is $400000 then you would only pay GST and not the harmonized tax?

We are just in the process of signing a contract for a house that will be a total of $420K, but that includes a lot premium and the base house price. If I take off the GST then I might JUST be alright. But then again, once I add future upgrades from the design centre phase, then we might be over the 400K.

This will impact our decision to by this particular home. I hope we find out all the details tomorrow so we can decide whether to look at a less expensive option that would be free and clear of the HST.

What timing!
Reply With Quote
  #38  
Old 2009-03-25, 11:45 PM
sarcol27 sarcol27 is offline
Senior Member
Regular User
 
Join Date: Sep 2008
Posts: 486
Default

According to this article there will also be a partial reimbursement for homes between 400K and 500K.

http://www.nationalpost.com/news/can...tml?id=1427869
Reply With Quote
  #39  
Old 2009-03-26, 12:38 AM
noordinaryotter noordinaryotter is offline
Senior Member
Regular User
 
Join Date: Feb 2008
Posts: 1,138
Default

If we are required to pay the full difference, we might walk away and buy a cheaper house. In this market, we would end up better off even losing our deposit. I hate to think about it.
__________________



Soho West - Kanata


Uh...make that Trailwest...
Reply With Quote
  #40  
Old 2009-03-26, 07:54 AM
DRC DRC is offline
Senior Member
Regular User
 
Join Date: Aug 2008
Location: Vaughan
Posts: 549
Default

"Ontarians will be paying a harmonized 13 per cent single sales tax as of July 1, 2010, the Star has learned.

"New homes costing less than $400,000 will continue to be subject only to the 5 per cent federal GST.

Buyers of houses costing $400,000 to $500,000 would receive a partial tax credit. But new homes that cost more than that would be taxed at the full rate.

http://www.thestar.com/News/OntarioB...article/608544

Last edited by DRC; 2009-03-26 at 07:58 AM.
Reply With Quote
Reply

Bookmarks

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump



All times are GMT -4. The time now is 09:01 PM.



Copyright © PHAND Corporation
This document may not be used elsewhere without the expressed written consent of PHAND Corporation.
*** There is no association between this website and any builder. ***

Powered by vBulletin® Version 3.8.10
Copyright ©2000 - 2019, vBulletin Solutions, Inc.