Details of the Return to PST

On February 17th, 2012 the government announced new transitional rules for HST to be charged on homes completed between April 1, 2012 and April 1, 2012. For home purchases closing between these dates, GST and PST will be charged and a new housing rebate of 71.43% of the PST portion to a maximum of $42,500 will be available. The threshold was also raised for the qualifying new home purchase price to $850,000.

n simple terms: If you buy a home for $850,000 (or less) you will pay the usual GST and PST of 2% after the rebate is taken into account. These new rules apply to new rental housing, new principal residences AND new second homes or recreational homes. Full details can be found within this PDF: 2012_housing_rules_FEB