Blog by Evon Mayer

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GST Reduction !

 No waiting on GST Reduction for New Home Buyers!

While most Canadians have to wait until January 1, 2008, to take advantage of the new 5 per cent GST rate, the savings are already making a big difference.

 

That’s because the reduced tax rate is effective immediately on new homes purchased on or after October 31, 2007, as long as the deal closes after January 1, 2008. This is good news for Realtors and their clients who won’t have to delay a purchase in order to wait for the new tax rate to apply.

 

What does a measly one per cent mean for a consumer? Not much on a pair of socks, but  significant savings for a young couple just breaking into the housing market. Last year at this time, GST would have totaled $18,000 on a $300,000 condo. Now, GST adds only $15,000 to the final price, but combined with the GST New Housing Rebate which returns just over a third of the GST owed, that couple will now pay just $9,600 in taxes, instead of $11,520, saving $1,920 thanks to the reduction.

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