How will HST affect Toronto home purchase costs?

In Ontario, the 13% HST comes into effect on July 1, 2010. [The government would like to word it as the "more modern, and value-added tax that will be combined with the current GST.]  Only 17% of products will see the new tax. The new tax will affect personal and professional services such as:

• electricity and heating [natural gas and oil for the home]
• internet access service
• Home Service Calls by Electrician/Plumber/Carpenter to Maintain or Repair Furnace, Leaky Faucets, Bathtub, Toilet, Electrical Wiring, etc.
• Landscaping, Lawn-Care and Private Snow Removal
• Magazines Purchased by Subscription
• Home Renovations
• legal, accounting fees

For real estate transactions:

• New homes over $400,000. [However, new homes purchased as primary residences, valued at $400,000 or more will be eligible for the maximum new housing rebate of $24,000.]
• Real estate commissions   [the current 5% GST will change to 13% HST]
• Residential condo fees charged to residents are exempt; however, purchases by condominium corporations will be subject to HST, if applicable.
• No change to Residential rents. Commercial property rentals will be subject to HST.
• No change to mortgage interest cost

You can learn more about the upcoming changes at  the Ministry of Revenue website http://www.rev.gov.on.ca/en/taxchange/taxable.html   or call 1 800 337-7222  and 1 800 959-5525 [CRA]