First, the good news....there is no HST tax payable on the sale of a resale home (residential). So the single largest dollar amount exchanged is not taxable under HST.

However, under the harmonized sales tax (HST), home buyers and sellers will have to pay extra tax on a range of services associated with the real estate transaction: services such as legal fees, moving costs, real estate commissions and home inspection fees. Currently, consumers only pay the 5% Goods and Services Tax (GST) on these services.

In a nutshell, after July 1, 2010, if you are a seller, there will be a 13% percent tax payable on the real estate commission you pay - currently there is only the 5% percent GST payable on this fee. Your lawyer's fee will also be subject to the 13% percent HST. One bit of good news - the cost of a Condominium Status Certificate will remain the same; while there will be HST at 13% instead of GST at 5%, there cannot be an increase in the legislated maximum total amount of $100.

If you are a buyer, any Home Inspection you pay for will be subject to the 13% percent HST and so will the cost of movers hired. In addition, the cost of the CMHC premium for "high-ratio" mortgages has traditionally been taxable for PST - this amount will now be taxable for the full 13% percent HST.

So one can see that, with the introduction of the HST, whether you are buying or selling a Resale Home in Ontario, costs will be going up.

Comparison Chart

Type of Good / Service	PST	HST	Effect
Admissions	Non-taxable	Taxable	Increased cost
Admissions under $4	Exempt	Taxable	Increased cost
Advertising services	Non-taxable	Taxable	Increased cost
Cleaning services	Non-taxable	Taxable	Increased cost
Commercial rent	Exempt	Taxable	Increased cost
Commissions	Non-taxable	Taxable	Increased cost
Custom software	Exempt	Taxable	Increased cost
Dry Cleaning	Non-taxable	Taxable	Increased cost
Gas for automobiles	Non-taxable	Taxable	Increased cost
Goods for resale & raw materials	Exempt	Taxable	Increased cost
Basic Groceries	Exempt	Exempt	No change
Internet access	Non-taxable	Taxable	Increased cost
Magazines (conditions apply)	Exempt	Taxable	Increased cost
Manufacturing equipment	Exempt	Taxable	Increased cost
Membership fees (fitness, golf, etc.)	Non-taxable	Taxable	Increased cost
Mortgage interest	Exempt	Exempt	No change
New homes	Exempt	Taxable	Increased cost
Newspapers	Non-taxable	Taxable with Point-of-sale rebate	No change
Personal services (haircuts)	Non-taxable	Taxable	Increased cost
Prepared food - restaurants	Taxable	Taxable	No change
Prepared food - restaurants - under $4	Exempt	Taxable with Point-of-sale rebate	No change
Professional fees - legal, accounting, consulting	Non-taxable	Taxable	Increased cost
Real property contracts	Non-taxable	Taxable	Increased cost
Residential rent	Exempt	Exempt	No change
Safety clothing	Exempt	Taxable	Increased cost
Seminars / Conferences	Non-taxable	Taxable	Increased cost
Shoes under $30	Exempt	Taxable	Increased cost
Soft drinks and snacks	Taxable	Taxable	No change
Taxi, limousine	Non-taxable	Taxable	Increased cost
Telephone	Taxable	Taxable	No change
Utilities - gas, hydro, fuel, cable	Non-taxable	Taxable	Increased cost