Hello all,
This morning I got an update from Heather Degraaf at Scotiabank regarding HST and it's impact on Real Estate Sales. This has clarified a few issues and questions for me, so hopefully it will be helpful for you:
_________
What is HST?
The merging of the current Provincial Sales Tax (PST) with the Federal Goods and Service Tax (GST) into one new tax.
Who does it Affect?
The New HST affects Ontario and British Columbia
Nova Scotia, New Brunswick, and Newfoundland have already implemented a Harmonized Tax while Saskatchewan, Manitoba, Quebec, and Prince Edward Island all collect separate PST or QST (Quebec)
How much is it?
In Ontario, it will be 13% (5% GST + 8% PST)
When will it be implemented?
Beginning July 1, 2010
How does it affect the sale of my current owner occupied principal residence (resale)?
The sale of housing that has been previously occupied by an individual as a place of residence and that was exempt from GST would also be exempt from HST
When does the HST apply to the sale of a new construction home or new rental property?
Builders sales of newly constructed or substantially renovated homes would be subject to HST when both ownership and possession of the home are transferred after June 30, 2010.
The provincial portion of HST would not apply to builders sales of newly constructed or substantially renovated homes that are taxable under the GST where, under a written agreement of purchase and sale, ownership or possession of the home is transferred before July 1, 2010.
The HST would not apply if either the ownership or possession of the complex is transferred, under a written agreement of purchase and sale, to the purchaser, before July 1, 2010 or if the sale was entered into on or before June 18, 2009 in Ontario and November 18, 2009 in British Columbia, regardless of the ownership or possession date.
Is there a Housing Rebate?
Yes, new housing rebates would apply when HST is charged and the purchaser would have qualified for a GST rebate
Please visit http://www.rev.gov.on.ca/en/taxchange/index.html and http://www.gov.bc.ca/hst for more information on the rebate.
Are other closing costs subject to HST?
Yes, other costs associated with the purchase of you rnew house, including legal fees, home inspection fees, appraisal fees, and real estate agent commission fees will be subject to HST.
This information was provided by Heather Degraaf, Mortgage Development Manager, and Heather can be reached at 519-421-5260
For more information, feel free to contact Heather, or myself!
Ben Sage, Sales Representative. http://www.bensage.com http://www.oxfordcountyhomes.ca Re/Max a-b Realty Ltd., Brokerage. 519-536-7535. 521 Dundas St., Woodstock, ON
Monday, March 22, 2010
Thursday, March 11, 2010
Ontario set to outpace the rest of the country in 2010!
Reprinted from CBC NEWS
Ontario's economy is expected to outpace the national average with 3.3 per cent growth this year and 4.1 per cent growth in 2011.
RBC Economics says increased housing activity and greater vehicle production spurred a return to positive growth in late 2009.
The bank forecast says Ontario's construction sector should see a rise in activity in 2010, fuelled by higher capital spending.
It also says high demand for real estate should extend to new homes, with housing starts likely to hit 64,200 units this year — 14,100 more than in 2009.
But, the report says, "this recovery will not be evenly felt across economic sectors. For instance, the province’s hard-hit manufacturers will continue to face many obstacles. Top on the list of impediments will be the continued strength in the Canadian dollar ... which will dampen the beneficial effect of improving demand south of the border."
RBC notes that a strong Canadian dollar limits U.S. demand for Ontario exports and the auto sector is susceptible to more turbulence.
The forecast also predicts the introduction of the new harmonized sales tax [HST] in Ontario on July 1, will be 'possibly the biggest policy event to occur in 2010 ..."
"Although the HST will result in certain currently exempt products and services being taxed, moving to a value-added tax structure will make the tax system more economically efficient and will improve the competitiveness of Ontario businesses by lowering the cost of doing business in the province. The benefits of such a tax system will accrue over the medium to longer term."
The report says the Ontario economy should improve this year and next as more industries move into recovery mode.
Ben Sage, Sales Representative. http://www.bensage.com http://www.oxfordcountyhomes.ca Re/Max a-b Realty Ltd., Brokerage. 519-536-7535. 521 Dundas St., Woodstock, ONTuesday, February 16, 2010
For my 100th blogger post, I have EXCITING news!!
Back by overwhelmingly popular demand, the County of Oxford has announced another round in the Ontario Affordable Housing Program (AHP).
If you're currently renting, and you are having trouble saving for a downpayment, you may qualify for up to 10% in downpayment assistance, courtesy of the AHP.
The EXCITING news here is that this government issued assistance is available on NEW homes and RE-SALES!!! That opens the door to far wider selection of homes to consider!
Contact me today for more information, and to start looking for that perfect place!
MORE INFO HERE
Ben Sage, Sales Representative. http://www.bensage.com http://www.oxfordcountyhomes.ca Re/Max a-b Realty Ltd., Brokerage. 519-536-7535. 521 Dundas St., Woodstock, ON
If you're currently renting, and you are having trouble saving for a downpayment, you may qualify for up to 10% in downpayment assistance, courtesy of the AHP.
The EXCITING news here is that this government issued assistance is available on NEW homes and RE-SALES!!! That opens the door to far wider selection of homes to consider!
Contact me today for more information, and to start looking for that perfect place!
MORE INFO HERE
Ben Sage, Sales Representative. http://www.bensage.com http://www.oxfordcountyhomes.ca Re/Max a-b Realty Ltd., Brokerage. 519-536-7535. 521 Dundas St., Woodstock, ON
Tuesday, February 9, 2010
Updated Mortgage Rates, Courtesy of Dominion Lending
Hello everyone!
WOW! Interest rates have decreased again! Here are the rates as of Monday February 8th.
6 month 3.50%
1 year 2.49%
2 year 2.95%
3 year 3.40%
4 year 3.85%
5 year 3.64%
VRM closed 2.05% ( prime - 0.20% )
LOC 3.15% ( prime +0.90%)
Holly Breckenridge
Mortgage Agent
Dominion Lending Centres
(First Capital Inc.) License #10746
88 Wellington St
Stratford, Ontario
N5A 2L2
Ph 519-275-5029
Fx 519-273-4202
License # M09000659
Ben Sage, Sales Representative. http://www.bensage.com http://www.oxfordcountyhomes.ca Re/Max a-b Realty Ltd., Brokerage. 519-536-7535. 521 Dundas St., Woodstock, ON
WOW! Interest rates have decreased again! Here are the rates as of Monday February 8th.
6 month 3.50%
1 year 2.49%
2 year 2.95%
3 year 3.40%
4 year 3.85%
5 year 3.64%
VRM closed 2.05% ( prime - 0.20% )
LOC 3.15% ( prime +0.90%)
Holly Breckenridge
Mortgage Agent
Dominion Lending Centres
(First Capital Inc.) License #10746
88 Wellington St
Stratford, Ontario
N5A 2L2
Ph 519-275-5029
Fx 519-273-4202
License # M09000659
Ben Sage, Sales Representative. http://www.bensage.com http://www.oxfordcountyhomes.ca Re/Max a-b Realty Ltd., Brokerage. 519-536-7535. 521 Dundas St., Woodstock, ON
Monday, February 8, 2010
HST on Mortgage insurance premiums
Good day everyone!
I have just received a little bit of good news regarding the upcoming tax hike known as the HST.
Although the prices of HOUSING will not be subject to HST, unless the purchase price is above $400,000, and the home is new, many Real Estate Transaction related services will be subject to this new "value-added-tax" (whatever the hell that means). Examples of services that will be subject to a new 13% tax rate (formerly 5%... GST only) are Commissions, Home Inspection Fees, services such as plumbers, electricians, stagers, etc.
Here's some GOOD news. Many of my clients are buying their first home. Even after saving for years, it is difficult for people to come up with a 20% downpayment on a house. If you require a mortgage with less than 20% down, you will need to be approved, and pay for, MORTGAGE INSURANCE. Commonly sold to you by CMHC (Canadian Mortgage and Housing Corporation), or Genworth Financial, this insurance covers the bank against any losses stemming from your inability to pay for the house you've purchased. You MUST have mortgage insurance if you have less than 20% down.
Anyway, traditionally, this mortgage insurance is charged as a percentage of your purchase price, and is added to the mortgage principal and paid through the duration of the mortgage.
This mortgage insurance premium amount is currently subject to PST, and taxes would be paid on it at a rate of 8%. These taxes CANNOT be added to the mortgage, and MUST be paid to your lawyer as a part of your "adjustments." Typically a few hundred more dollars you need to come up with to get your deal to close.
The GOOD news is that this particular service is NOT going to be taxed at the new Harmonized rate of 13%. It will remain at 8%.
A small break, for now, courtesy of your wonderful government.
If you have more questions about this tax-grab, and it's impact on your upcoming home purchase or sale, don't hesitate to contact me, and we can figure out your tax-mess together!
Ben Sage, Sales Representative. My Personal Website Re/Max a-b Realty Ltd., Brokerage. 519-536-7535. 521 Dundas St., Woodstock, ON
I have just received a little bit of good news regarding the upcoming tax hike known as the HST.
Although the prices of HOUSING will not be subject to HST, unless the purchase price is above $400,000, and the home is new, many Real Estate Transaction related services will be subject to this new "value-added-tax" (whatever the hell that means). Examples of services that will be subject to a new 13% tax rate (formerly 5%... GST only) are Commissions, Home Inspection Fees, services such as plumbers, electricians, stagers, etc.
Here's some GOOD news. Many of my clients are buying their first home. Even after saving for years, it is difficult for people to come up with a 20% downpayment on a house. If you require a mortgage with less than 20% down, you will need to be approved, and pay for, MORTGAGE INSURANCE. Commonly sold to you by CMHC (Canadian Mortgage and Housing Corporation), or Genworth Financial, this insurance covers the bank against any losses stemming from your inability to pay for the house you've purchased. You MUST have mortgage insurance if you have less than 20% down.
Anyway, traditionally, this mortgage insurance is charged as a percentage of your purchase price, and is added to the mortgage principal and paid through the duration of the mortgage.
This mortgage insurance premium amount is currently subject to PST, and taxes would be paid on it at a rate of 8%. These taxes CANNOT be added to the mortgage, and MUST be paid to your lawyer as a part of your "adjustments." Typically a few hundred more dollars you need to come up with to get your deal to close.
The GOOD news is that this particular service is NOT going to be taxed at the new Harmonized rate of 13%. It will remain at 8%.
A small break, for now, courtesy of your wonderful government.
If you have more questions about this tax-grab, and it's impact on your upcoming home purchase or sale, don't hesitate to contact me, and we can figure out your tax-mess together!
Ben Sage, Sales Representative. My Personal Website Re/Max a-b Realty Ltd., Brokerage. 519-536-7535. 521 Dundas St., Woodstock, ON
Thursday, February 4, 2010
Scotiabank Woodstock Pays bigtime to Toyota Employees!
Scotiabank Woodstock Preferred Banking Package
for Employees of Toyota Motor
Manufacturing Canada Inc.
for Employees of Toyota Motor
Manufacturing Canada Inc.
Mortgage:
Get a new mortgage with Scotiabank and get
- Legal Fees Paid – up to $450.00*
- Appraisal Fee Paid – up to $250.00
plus...
No Application Fee
120 Day Rate Guarantee Free Life Insurance from Approval to Closing Date**
No Application Fee
120 Day Rate Guarantee Free Life Insurance from Approval to Closing Date**
- Free Second Opinion with an accredited Financial Advisor
- Preferred Pricing on Investments
- Free Bank Account for One Year
- Simple Switch® - A hassle free way to transfer your existing automatic payments from another financial institution
- Free Standard Safety Deposit Box for One Year (subject to availability)
- Choose from a wide range of Visa Products
Contact:
Heather deGraaf Mortgage Specialist
519.535.7890
heather.degraaf@scotiabank.com
™Trademarks of The Bank of Nova Scotia. ®Registered trademark of The Bank of Nova Scotia. *Legal fees paid upon opening a Scotiabank Account with Visa product. **Subject to approval. All mortgage and VISA Products are subject to certain credit criteria. Mortgages are subject to the home meeting Scotiabank residential property standards and maximum permitted loan amounts. Mortgage and Banking Products are subject to change and or withdrawal at any time without notice.
Ben Sage, Sales Representative. http://www.bensage.com http://www.oxfordcountyhomes.ca Re/Max a-b Realty Ltd., Brokerage. 519-536-7535. 521 Dundas St., Woodstock, ON
Wednesday, February 3, 2010
Giving back to the community, I am bowling in the 2010 "Bowl for Kids Sake"
In response to a great demand in Woodstock and area for Big Brothers and Big Sisters, I am bowling in the 2010 Bowl for Kids Sake.
My team will be Bowling February 24th, between 8:00-9:30.
I have set a RATHER low goal of $200. I want to double that. Please click THIS link to visit my page and donate!!
P.S. Tell your friends.
Ben Sage, Sales Representative. http://www.bensage.com http://www.oxfordcountyhomes.ca Re/Max a-b Realty Ltd., Brokerage. 519-536-7535. 521 Dundas St., Woodstock, ON
My team will be Bowling February 24th, between 8:00-9:30.
I have set a RATHER low goal of $200. I want to double that. Please click THIS link to visit my page and donate!!
P.S. Tell your friends.
Ben Sage, Sales Representative. http://www.bensage.com http://www.oxfordcountyhomes.ca Re/Max a-b Realty Ltd., Brokerage. 519-536-7535. 521 Dundas St., Woodstock, ON
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