1. The Harmonized Sales Tax (also known as the new BC HST) is 12% tax applicable to most goods and services, including new homes, real estate, and property.
2. The new B.C. HST 12% Tax is the combination of the Federal Goods and Services Tax (5% GST) and the Provincial Sales Tax (7% PST).
3. Implementation of the BC Harmonized Sales Tax will take place on July 1, 2010.
4. The BC HST is NOT a 12% real estate tax, but a provincial harmonized tax on most goods, services and consumer products including new homes.
5. Currently, new BC and Kamloops homes are subject to 5% GST (federal tax) in which first time homebuyers or investors can receive GST rebates. This 5% GST will be replaced with the higher 12% B.C. Harmonized Sales Tax (HST), a 7% difference in taxes on the total purchase price of a new British Columbia home or property.
6. The B.C. HST program will give partial rebates for new BC homes priced up to $400,000. The government will give these homebuyers a partial five per cent BC HST rebate on the provincial tax side.
7. The British Columbia Harmonized Sales Tax of 12% HST is also applicable to any costs and fees associated with your property/home purchase including legal/notary fees, commissions and other closing costs.
8. The rebate reduces the GST and the federal part of the HST paid from 5% to approximately 3.5% for homes valued at $350,000 or less.
9. The rebate is gradually reduced for homes valued from $350,000 to the maximum value of $450,000.
10. Those who buy or build new homes, or substantially renovate their homes, are eligible for this rebate of up to $26,250.To find out how much tax you’ll pay on new housing, enter the price in the new home HST calculator.Those who buy pre-owned homes do NOT pay any HST.

‘The stream of value flowing to the customer is probably the single most important element in any business…creating and delivering superior value to the customer is the center of the value-creation cycle and underpins all business success.”     Loyalty Rules, Frederick Reichheld

BC Property Transfer Tax:  This is a provincial tax charged every time a property changes hands.  The cost is 1% on the 1st $200,000 of property value, and 2% on the remainder. 
If you are a first time homebuyer you may qualify for an exemption from the property transfer tax if certain requirements are met.

Requirements for purchaser are: 
You are a Canadian citizen or permanent resident.
You have lived in BC for 12 consecutive months before the date you register your property.
You have never owned an interest in a principle residence anywhere in the world at anytime.
You have never received a first time home buyers’ exemption or refund.

Requirements for Property:
Fair market value of the property is not more than $425,000
The land is only (1.24 acres) or smaller.
The property will only be used as your principle residence.

Requirements to keep the exemption or you will have to pay it back to the government:
You need to live in the property for at least one year after you register the property.
The minister will send you a letter at the end of the first year you own the property.  The letter will ask you to confirm that the property is still your principle residence.
You can only pay down $11,000 in principal off of the mortgage in your first year.