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


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  #41  
Old 2009-03-26, 08:29 AM
saw_mui saw_mui is offline
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Quote:
Originally Posted by sarcol27 View Post
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!
I was talking about removing the GST on the house price as it is already included...if u take the house price rite now and have the pst on it..then is not accurate. But then that's my take on it.

You should speak with the builder regarding lot premium..i heard certain ppl were able to have included in the price - again that is dependent on the builder and i also don't know what terms were in the contract.
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  #42  
Old 2009-03-26, 08:31 AM
saw_mui saw_mui is offline
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Originally Posted by DRC View Post
"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
if the july 1, 2010 date is true..i hope no one here would have a delay...as i assume everyone's tentative dates is prior to this....
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  #43  
Old 2009-03-26, 09:45 AM
noordinaryotter noordinaryotter is offline
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We're sitting almost exactly at the rumoured exemption limit, but like was just said, they'd have to consider that that price includes 5% GST. It was built into the purchase price, and so the before-tax price would have to be calculated and the tax rate determined with the before-tax price. They can't HST the price that already includes GST. That would be 'double-dipping'.

Right?
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  #44  
Old 2009-03-26, 10:20 AM
TomC TomC is offline
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Wow - is it just me or is anyone else getting the sense of mass hysteria from this thread? Why don't we all just wait a few hours until the budget is announced to get the details?

On a sidenote, if this passes it'll be interesting to see if the voters are as forgiving to the Liberals in 2011 as they were last time when they broke their no-new-taxes promise with the healthcare surtax.
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  #45  
Old 2009-03-26, 01:59 PM
noordinaryotter noordinaryotter is offline
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Originally Posted by TomC View Post
Wow - is it just me or is anyone else getting the sense of mass hysteria from this thread? Why don't we all just wait a few hours until the budget is announced to get the details?

On a sidenote, if this passes it'll be interesting to see if the voters are as forgiving to the Liberals in 2011 as they were last time when they broke their no-new-taxes promise with the healthcare surtax.
You're right that there is nothing to do but wait and that some people, including myself, are pretty worried.
We aren't talking about possibly paying a $100 tax here---we're talking about possibly paying $40,000 tax and losing our house and forfeiting our deposits. There's no need to be so patronizing.
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  #46  
Old 2009-03-26, 04:18 PM
saw_mui saw_mui is offline
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http://toronto.ctv.ca/servlet/an/loc...TorontoNewHome

it's offical:

"However, if you are buying a new home for $800,000 under the new regime, that home will cost you an additional $40,000.


Purchasers of new homes worth up to $500,000 will get a rebate on the provincial portion of the new sales tax. "The effect of the housing rebate would be to ensure that, on average, new homes under $400,000 would not be subject to an additional tax burden," the government wrote."


Effective July 1, 2010
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  #47  
Old 2009-03-26, 05:27 PM
Reesa Reesa is offline
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There are already a bunch of empty lots that the builder hasn't sold right near me, all of those homes start at $550K and will therefore be subject to the full 13% tax. I wonder what that will mean for the future of these subdivisions that are already having difficultly.
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  #48  
Old 2009-03-26, 05:43 PM
sarcol27 sarcol27 is offline
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I can't seem to find any specific information on the implementation of this or the details. I read the sections of the budget relating to new home purchases but it does not contain the answers to some of my questions.

Are you subject to the tax if your house CLOSES after July 1st?
or
Are you subject to the tax if you enter into a purchase to buy a house after July 1st?

Does it apply on the pre-GST price of the house including land cost, upgrades?

Or, what if your closing date is for June 2010 but then there is a delay??

Sorry for all these questions! If anyone can direct me to where I might find these answers I would really appreciate it. We were just about to enter into a purchase agreement but will have to explore other options (maybe cheaper home, resale market) if this negatively impacts us.

Thanks for any help with this.
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  #49  
Old 2009-03-26, 06:08 PM
S and B S and B is offline
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Quote:
Originally Posted by Reesa View Post
There are already a bunch of empty lots that the builder hasn't sold right near me, all of those homes start at $550K and will therefore be subject to the full 13% tax. I wonder what that will mean for the future of these subdivisions that are already having difficultly.
I'm also wondering how this will affect the housing market. It seems that the trend lately has been that people are going for smaller homes. Having this tax may further push people to forget about buying the bigger homes...
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  #50  
Old 2009-03-27, 12:01 AM
Mark & Lynda Mark & Lynda is offline
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S and B: to answer your post from the closed thread,

"If that is the case though (and I really don't know what the case will be) how could the builder charge PST on items they did not pay PST for in the first place? For instance, my home, which will close in June, already has most items purchased...all of which were purchased and taxable to the builder with GST only. So if the builder didn't pay the PST, why would the owner be responsible for paying it?"

Are you referring to the materials the builder purchased to build your home? If that's what you're referring to, the builder does not pay PST on material purchased for resale. They purchase goods PST exempt then charge PST on the finished product to the consumer. This way the gov't gets the PST once and not every single time the product changes hands. Works the same for every business purchasing goods for resale.
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