Things You Should Know About HST

Theresa’s Soap Box | SMP Online

HST has caused quite the disturbance recently.  A lot of people are really worried and very concerned about this issue.   Since HST has been around for a while now, we thought we’d take the time to address some popular concerns that we’ve come across regarding the HST.

We’re going to begin by clearing up some concerns of HST without going into too many details, like how the HST rebate is assigned.  What we are discussing will be very basic.

12% on your entire purchase price?

We’ve had a lot of people concerned that they would be required to pay 12% on top of their entire purchase price and they were not buying a home that was brand new.

Here’s the thing, you don’t pay HST on every single property transaction.   HST only applies if you’re buying a brand new home or something that has been substantially renovated and that it is being sold like new.   In the case of a heavily renovated property you do pay HST because they’ve put in the work to rebuild and restore the property etc.

If you’re buying a house being sold by somebody else, that has already been owned and lived in, then there is NO HST applicable.

HST on to your mortgage

Unlike your lawyer fee or your property transfer tax, HST can actually be added to your mortgage amount.  This is good because you won’t be require to pay, what probably might be tens and thousands of dollars, out of pocket.

Even better, you can negotiate to have your HST included on your purchase agreement (contract purchase price).  In some areas this is standard and in other areas it is not.  Always make sure to look at your contract and see if the contract price includes HST or negotiate to have that included so you don’t have to add in that extra cost for yourself.

If you have any questions on employment history and mortgages, feel free to call us at 1-866-521-9557 or email at

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