With the provincial transition from the HST back to the PST approaching in April 2013, the government has announced some new provisional regulations. The measures are designed to lessen the burden of the HST for home buyers.
The measures include the following:
The housing rebate threshold for BC will increase from $525,000 to $850,000. This means that more than ninety percent of new homes will be eligible for the HST provincial rebate as of April this year.
The maximum rebate will also increase to $42,500. This is up from the $26,250 it was.
Provincial grants will also be made available to those purchasing a secondary vacation home or recreation home. This applies to homes purchased outside the greater Vancouver area and the Capital Regional Districts. This applies to homes for sale Vancouver priced $850,000. This is up from the homes for sale Vancouver price of $42,000.
For homes for sale Vancouver that are beginning construction before April 1 2013, but ownership or possession do not occur until sometime thereafter, the buyers will get to avoid the 7% provincial portion of the HST. They will however pay a transitional provincial tax of 2% on the total house price.
These temporary housing measures will be in place until March 31st 2015. For more information you can see the BC Ministry of Finance webpage.