Government announces new HST/PST housing transitional rules

Feb. 18, 2012 | Market Update | By Aaron Rossetti

 

Kevin Falcon announced transitional HST rules for new house sales on Friday. Highlights include:

- The BC New Housing Rebate threshold will increase to $850,000 from $525,000, so that more than 90% of newly built homes will now be eligible for a provincial HST rebate effective April 1, 2012.

- The maximum rebate will increase to $42,500 from $26,250 effective April 1, 2012.

- Buyers of new secondary vacation or recreational homes outside the Greater Vancouver and Capital Regional Districts priced up to $850,000 will now be eligible to claim a provincial grant of up to $42,500 effective April 1, 2012.

- For newly built homes where construction begins before April 1, 2013, but ownership and possession occur after, purchasers will not pay the 7% provincial portion of the HST. Instead, purchasers will pay a temporary, transitional provincial tax of 2% on the full house price.

For more information on the announcement, click here.