Quote:
Originally Posted by ken0042
Regarding the GST on houses, I seem to recall that when GST went down from 7 to 6% that houses were not affected; because GST on new homes is less than 5% with the rebate you get from the gov't.
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Not anymore. That was when the average price of a home was far less than $400,000.
It was a sliding scale rate where the more expensive your home was, you paid more GST. Kind of a luxury tax if you will. The bigwigs who were building $350k+ home at that time were paying full gst. Joe average who was spending $150-200k were seeing gst rates of around 3.5-4% I believe. Funny how things have changed. A $350k home is now a starter home.
I believe there was some low level noise about having these rates adjusted again, but I dont think anything ever happened as this was a federally administered plan which would obviously effect new home prices throughout the country.