The HST could add $$$ to closing costs

The Harmonized Sales Tax (HST) is the combination of the Good and Services Taxes (GST) and the Retail Sales Tax. Currently, residents of Ontario pay five percent GST on services associated with Real Estate. As of July 1, 2010 Ontarians will be required to pay an additional eight percent on Real Estate services. For a resale house priced at $360,000, the HST could add over two thousand dollars in new taxes to closing costs.

Real Estate services include:

* Mortgage Insurance Premiums
* Legal Costs
* Real Estate Fees/Commission
* Home Inspection
* Title Insurance

Source: The Ontario Real Estate Association

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