Most Ontarians are still confused about HST and resale homes

An Ipsos Reid survey commissioned by OREA and released in October reveals that 56 per cent of Ontarians mistakenly believe that the new Harmonized Sales Tax (HST) applies to the full purchase price of a resale home. In fact, the HST is only levied on the various transaction fees associated with the purchase of a home that has been previously occupied (i.e. not a newly-built home).

Currently, the average price of a Barrie Real Estate home is around $278,000. Therefore, this confusion leaves the majority of Ontarians wrongly believing that the HST will add more than $35,000 to the transaction cost. There is growing concern among real estate professionals that this misperception about the HST is dampening the Ontario housing market.

We see it when talking with the general public in every day conversations. Clearly the residents of Barrie still don’t know what the HST covers and what is exempt. Dorothy Mason, President of OREA made comments recently after the results of the study were released. Dorothy commented, “This is not helping the housing market and it’s not helping the Ontario economy. This confusion means that many buyers think the cost of a resale home is tens of thousands of dollars higher than it actually is.” If you are considering buying a resale home in the Barrie Real Estate area please give us a call and we can explain should you have any questions.

The Ontario Real Estate Association (OREA) is calling on the Government of Ontario to launch a public awareness campaign to clear up the HST confusion among potential homebuyers.

OREA commented “We’re doing our part to inform our clients, but we shouldn’t have to do it alone. We’re calling on the Ontario government to launch an immediate public awareness campaign to educate taxpayers and end the HST confusion,” said Mason. “For average homebuyers, learning that the HST does not apply to the full purchase price means a $40,000 saving they weren’t expecting.”

Filed under: BarrieBarrie Community InformationBarrie Real EstateStatistics

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