What does the HST mean for you? In a nutshell, this tax will expand the provincial eight percent sales tax to apply, as of July 1, 2010, to the things that are currently applicable to the federal Goods and Services Tax (GST). This means that home buyers will have to pay an additional 8% PST on numerous items that they currently do not, including home inspection fees, legal fees, moving costs, home appraisals, and real estate service fees or commissions, as well as many other goods and services that are now exempt from PST.
HST will not apply to resale homes, but will be added to the cost of buying a new house or condo. There are some exemptions to this for new homes in the form of a rebate of 75% on the first $400,000 of the cost of a new home. The great majority of builders are planning on including the HST as a part of the sale price, so even though you are paying it you will not see the actual amount.

Current taxes paid, versus the new combined HST tax payable,
on a hypothetical $360,000 real estate transaction:
Current Tax New Tax Total HST Payable

Mortgage Insurance $752.40 $ 470.25(2) $1,222.65
Legal Costs $50.00 $ 80.00 $ 130.00
Real Estate Commission(3) $900.00 $1,440.00 $2,340.00
Home Inspection $ 20.00 $ 32.00 $ 52.00
Title Insurance $ 24.00 $ 15.00 $ 39.00
Total New Tax: $2,037.25
(1) CMHC premium of 2.75% for mortgage with a 5% down payment on a $300,000+ home.
(2) Consumers currently pay the 8% PST on mortgage insurance premiums.
(3) Real estate commissions are negotiable – 5% used in this example.
This is also another reason to purchase your dream home now, before the new HST changes take effect and the cost of purchasing becomes higher.