A full 56% of Ontarians mistakenly believe that the new Harmonized Sales Tax (HST) applies to the full purchase price of a ReSale Home, according to am Ipsos Reid survey commissioned by the Ontario Real Estate Association (OREA). "We see it on the front lines every day, clearly, Ontarians still do not know what the HST covers and what is exempt", says Dorothy Mason, President of OREA. "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."

OREA is working to create as much awareness as possible among consumers about the reality of the HST and ReSale Homes. For example, a press release sent out following the survey was picked up by many news outlets across the country and reached 5.5 million Canadians - an indication of the level of interest about the issue.

OREA would like the Government to take some responsibility for educating potential Home Buyers as well. "Were doing our part to inform our clients, but we shouldn't have to do it alone. Were calling on the Ontario Government to launch an immediate public awareness campaign to educate taxpayers and end the HST confusion." concluded Dorothy Mason. "For the average homebuyers, learning the HST does not apply to the full purchase price means a $40,000 saving (currently the average price of a home in Ontario is $330,000) they were not expecting."

HST and ReSale Homes - The Facts The HST is only levied on the various transaction fees associated with the purchase of a ReSale Home (NOT a Brand new Home built by a Builder/Developer and never lived in before). Real Estate Commissions are subject to the 13% HST Lawyer's Fees are also subject to the 13% HST The Condominium Status Certificate fee remains at $100.00 but has the HST included in the price. Moving Costs, the cost of a home inspection and even home staging is also subject to the 13% HST The results of the survey were consistent across all age groups.

However, there were some differences across other demographic categories. For instance, of those surveyed half of university graduates, 71% of Northern Ontarians, 59% of those living in Eastern and Southwestern Ontario, and 54% of GTA residents all mistakenly believe the HST applies to the full purchase price of ReSale Homes. This is a whopping statistic that needs widespread coverage to clear the air on the HST, if anyone needs further information on the HST or has any questions, please feel free to email me directly at: info@deborahlsykes.com

From: Deborah L. Sykes, Sales Representative, Sutton Group About-Town Realty Inc., Brokerage