Yes, HST has arrived and unlike the gov't claims of "easy transition", is already causing a deal of confusion.  In an attempt to mitigate mis-understanding of what has HST applicable, there have been a number of web sites put out explaining (in short) what has HST, including "increase" or "no change" comments.  For the most part, these do help understand what has the new tax on it, but in regards to Real Estate, they seemed to have "muddied" the water further.

On many of these sites, they indicate "Real Estate" with HST applicable indicated at only above $525,000.00.  In a sense this is true, but what many fail to understand is the HST is applicable only on new home purchases . . . regardless of price!  Why they state only above $525,000.00 is because there are also rebates on the HST, which up to the $525,000.00 price, will cancel out the HST paid.  This rebate is on a sliding scale up to the $525,000.00 and past this, is capped at a maximum rebate of $26,500.00, regardless of purchase price.  So in effect (or what is the intent) you really are only paying HST past the $525,000.00, it's just not a simple case of the HST not being applicable at all!

Will the HST stop you from purchasing a new home or just make you consider all options before taking the plunge?  We'd love to hear from you and see the difference of opinions.