There have been several questions over the past few months on “How will the new HST affect the resale market.” I wanted to try and show on paper the cost to both the buyer and seller on a typical single family home in Peterborough selling for $225,000.

Below are the costs to the buyer in this transaction with a down payment of 5%.

In the above example the buyer purchasing a resale home at a cost of $225,000, with 5% down on a 35 year amortization will pay an additional $659.65 in taxes than they are currently paying

In the above example, the seller would have $980.00 in new HST taxes, based on a selling price of $225,000 with a commission of 5%

It’s important for all of us to understand how HST will affect our business.  There is widespread misperception that the HST will be added to total purchase price of a resale, which is not the case.

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Constantine Isslamow -

Real Estate Broker

Century 21 United Realty Inc. Brokerage

Independently Owned and Operated

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