GST Cut !!!!

Well, the Harper government followed thru with their promise to reduce the GST. and did, to 5 per cent, which is effective January 1, 2008 . This is good news for home buyers and owners, it helps those in purchasing new homes and those who are considering home renovations, and consumers making household purchases.

This reduction will apply to homebuyers who purchase after October 30th and take possession after January 1, 2008. Anyone who purchased before October 30th and takes possessions after January 1, 2008 will be able to apply to Canada Revenue Agency for a transitional rebate that relfects the reduction to 5 per cent.

This combined reduction in the GST from 7 per cent to 5 per cent will mean savings of $3,840 on the purchase of a new home priced at $300,000. Together with the existing new housing rebate, the 5 per cent GST rate will restore the effective rate of federal sales tax on new homes to the level that applied before the introduction of GST in 1991.

Harper said the GST reduction will also help to encourage private investment in new rental housing which is needed to increase the supply of rental units that people can afford.

Source: CHBA Canadian Home Builder's Association