on July 1st, , taxpayers began to feel the pinch as 13% Harmonized Sales Tax (a combination of the 5% GST and 8% PST) came into effect. Ontarians now pay 8% more for a wide range of goods and services used everyday, including hydro, home heating fuel, natural gas, haircuts, vacations, and gasoline for your vehicle, as the 8% PST was not previously charged on these and many more items. Even funerals now cost between $650 and $1,300 more with the HST.
In November, the Finance Minister revealed that the HST agreement with Ottawa included a $4.3 billion penalty if the HST is repealed before 2015. This deal was made inn secrecy with no public debate.
The current government is using the HST as an opportunity to collect additional taxes from families rather than making tough decisions and reviewing programs for their effectiveness. In every other province that has implemented and HST, the combined rate has been decreased to give consumers some relief.
The National Citizens Coalition recent
Canadian home resale prices in six cities were up 13.6 per cent in May compared to a year earlier, according to a report issued Wednesday. The Teranet-National Bank National Composite House Price Index measured resale prices in Ottawa, Toronto, Calgary, Vancouver, Montreal and Halifax. It found the biggest gains were in Vancouver, where prices rose 17.1 per cent, and Toronto, where they are up 16.0 per cent. The 12-month rise ranged from 5.6 per cent in Halifax to 11.4 per cent in Ottawa. In Calgary, it was 7.8 per cent and in Montreal, 8.5 per cent. And for the second consecutive month, prices rose in May over April in all six metropolitan areas surveyed. The monthly rise of the composite index, at 1.3 per cent, was the largest since last September. Ottawa led the cities with the largest monthly rise, at 2.3 per cent. Prices rose 1.8 per cent in Montreal, 1.2 per cent in Vancouver and Calgary, 1.1 per cent in Toronto and 0.7 per cent in Halifax. The index tracks prices for homes th
HST? - How It Affects 12 Matters In Ontario
Real Estate
Beginning July 1, 2010, there will be sales tax in Ontario
of 5% + 8% = 13% (12% in British Columbia) replacing
the former 5% GST (Goods and Services Tax) and the
former 8% PST (Provincial Sales Tax).
1) HST and Mortgage Brokerage Fees (to arrange
a mortgage, if one uses a Mortgage Broker)
HST will not apply since mortgage brokerage services are
exempt as part of the financial services industry.
2) HST on Real Estate Commissions
Generally, HST will be payable on commissions for any
real estate sale closed after July 1, 2010. However, the
general transitional rule (for sale contracts entered into
before July 1, 2010), is if at least 90% of the services
were performed prior to July 1, 2010, only 5% GST is
payable (no PST). If an offer to purchase real estate was
accepted prior to July 1, 2010, then the realtor services
were performed prior to July 1, 2010, and only 5% GST
should be payabl
The cost of owning your own home has risen for the third straight quarter, with houses becoming less affordable in all provinces except Alberta, according to a report by RBC.
The bank said it expects affordability to continue to decline throughout this year and next as interest rates begin to rise.
RBC's Housing Affordability Index measures the amount of pre-tax income needed to service the cost of owning a home.
In the first quarter, the cost of owning a detached bungalow increased by 0.9 percentage point to 41.1%, a standard two storey home rose 0.6 of a point to 46.8% and the cost of a standard condominium was up by half a point to 28.2%.
The biggest declines in affordability were in British Colombia, Saskatchewan and Manitoba, with the index in Vancouver rising 4.8 points to 73.4% from the previous quarter.
Affordability levels in B.C. are now close to their all-time peak hit in 2008, and that may weigh on the housing market in the province in the short term, RBC sai
Toronto, May 5 2010 – As the Canadian economy begins to show signs of growth, results of TNS Canadian Facts’ economic tracking survey, TNS Vibe, indicate that intentions to purchase a house or condo have risen to 14 per cent nationally, compared to 11 per cent last September. However, the majority of that demand remains unsatisfied, as nearly two-thirds (64%) of those who were planning to purchase six months ago have still not bought.
“In spite of some softness in April, consumer confidence has risen considerably over the quarter and is now higher than it has been since the downturn began in the fall of 2008. It is encouraging to note that a number of Canadians are thinking seriously about getting into the real estate market,” said Brook Tyler, research director of TNS Canadian Facts and a member of the firm’s financial research practice.
This is not to say that the economic downturn has left the nature of home ownership unchanged. “In addition to delaying home purchases, home
OTTAWA - Canadians could be facing higher interest rates sooner than previously thought as a result of stubborn inflation and stronger economic growth, Bank of Canada Mark Carney said Wednesday.
Carney did not declare higher rates were on the way, but issued his clearest signal to date that his year-old commitment to keep the policy rate at the record 0.25 per cent until July was "expressly conditional" on inflation remaining tame.
In a speech to a business audience, the bank governor noted that both underlying core inflation and economic growth have grown slightly stronger, although broadly proceeding as expected.
The tip-off to economists was that he changed his language on his conditional commitment on interest rates, which has led to historically low rates for both consumers and businesses in Canada and helped the country recover from recession.
"This commitment is expressly conditional on the outlook for inflation," he told the Ottawa Economic Association.
It w
A last minute rush to qualify for the Home Renovation Tax Credit pushed retail sales up 0.7% in January, according to government data released Friday.
Home improvement stores were the largest contributor to the month’s $35.7 billion in retail sales, Statistics Canada said. The deadline to qualify for a maximum HRTC rebate of $1,350 was Feb. 1. The popular temporary program was part of the federal government’s Economic Action Plan designed to boost spending.
Sales at building and outdoor home suppliers were up 7.4% marking the highest monthly growth rate for this retail segment since Aug. 2003. Meanwhile sales growth at furniture and home furnishing stores topped previous records set back in the early 1990s.
In all, six of eight retail categories posted gains during the month. Supermarkets led the growth in food and beverage sales, which rose by 1.9%, effectively erasing December’s losses for the sector. Sales at wine beer and liquor stores also rebounded.
Clothing and m
March 18 (Bloomberg) -- Canada Housing Trust, the financing arm of the nation’s housing agency, sold C$6 billion ($5.9 billion) in mortgage bonds at the lowest relative yields since before the credit markets seized up in 2007.
Canada Housing sold five-year, 2.5 percent bonds maturing in March 2015. The debt priced to yield 18 basis points above Canada’s 2.5 percent bonds maturing in June 2015. That’s the lowest spread on a new Canada Housing issue since June 2007, when the agency paid a spread of 14 basis points. Since then, spreads have ranged from 21 to 65.5 basis points.
Borrowing costs are falling to levels last seen in the second half of 2007 when the global credit crisis began. The Bank of Canada has pledged to leave its key overnight rate at a record low 0.25 percent through June unless the inflation outlook shifts.
“The end beneficiary is not necessarily the government but those people taking out mortgages,” said Warren Lovely, a strategist at Canadian Imperial Bank
Canadian housing construction will ramp up in 2010, taking some steam out of existing home sales and signaling the return of a buyers' market, the Canadian Housing and Mortgage Corp said Monday. New housing starts, a key measure of economic growth, are expected to be between 152,000 to 189,300 units this year. There were 149,081 new units built in 2009. And in 2011 construction could be even higher, in the range of 156,400 to 205,600 units.
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