This information is correct as of today (December 30, 2009) but subject to change:
HST & Residential Housing
New Housing Rebate:
- 71.43% of the 7% provincial component up to a maximum of $26,250 rebate for homes up to $525,000
- Homes above $525,000 would receive a flat rebate of $26,250 (i.e. it would not phase out as the PPT rebate does)
- The PST embedded in new construction materials is estimated to be 2% so theoretically the price of new homes should be 2% less after HST comes into effect
- Federal portion of the HST (GST) would still be eligible for the transitional rebate of 36% (phased out between $350,000 and $400,000)
Transitional Rules:
Grandparenting:
- Any contracts written on or before November 18, 2009 would be exempt from provincial portion of the HST
- GST portion of the HST would still be payable
PST Transitional New Housing Rebate:
- Homes subject to the provincial component of the HST after June 2010 may be eligible for a PST transitional rebate for relief of PST embedded in the price (for contracts written prior to July 1, 2010 with completion after this date
- Only for non grandparented homes
- Amount of rebate would depend on the degree of completion of construction on July 1, 2010
Assignments:
- Any presale contracts written prior to November 19, 2009 would be grandparented and not subject to the provincial component of the HST (7%) even if they are assigned prior to the completion date