The 2009 Budget Impact on the Real Estate Market
The 2009 Budget Impact on the Real Estate Market
Milton, Ontario - April 2009 - The 2009 Budget just released offers almost no support for buyer or sellers and adding insult to injury, attaches additional expenses for those dreaming of one day owning their own home. The McGuinty government announced that it intends to harmonize the Provincial Sales Tax (PST) with the federal Goods and Services Tax (GST) hitting homebuyers and sellers right in the pocket book with additional taxes on a range of services associated with real estate transactions.
To go in effect on July 1, 2010 - Canada Day of next year, this change means that the provincial sales tax will be charged on legal fees, appraisals, real estate commissions, moving services, title insurance, home inspection fees and other services related to a real estate transaction. That will add an additional 8 per cent on items and services that were previously subject to only 5 per GST for 13 per cent.
For a resale house priced at $360,000, the Harmonized Sales Tax (HST) could add over two thousand dollars in new taxes to closing costs.
To read full article: http://www.omdreb.on.ca/News/Files/Milton%20in%20March%20web.pdf