The Durham Region Association of REALTORS along with Ontario REALTORS are calling on the Ontario government to give relief to homebuyers who could be hit hard from the Harmonized Sales Tax (HST) once it is administered in July.
The organizations are pushing the government to reduce the Provincial Land Transfer Tax (LLT) rate, to give a bit of a break to homebuyers, a release from the Durham Region Association of REALTORS states.
This reduction of .5 per cent could save the average homebuyer almost $1,600.  According to the release, under the HST homebuyers and sellers will pay eight per cent more on legal fees, appraisals, real estate commissions, home inspection fees and moving costs. This will add around $1,500 in new taxes to any average residential real estate transaction in Ontario.
“The HST is going to hit homebuyers and sellers hard,” says Pauline Aunger, president of the Ontario Real Estate Association (OREA).
“Cutting the provincial land transfer tax will help offset the cost of the harmonized sales tax, making homeownership more affordable for all Ontarians.”
OREA wants the government to cut the rate by 0.5 per cent on all property value tax brackets. This would save homebuyers $1,591 and cost the government $311 million annually, the press release explains. The HST will add $310 million in new taxes annually to residential resale home transactions.