Home Mortgage Rates

Term Rate
Prime 3.00%
Variable 2.90%
1 Year 2.89%
3 Year 2.69%
4 Year 2.95%
5 Year 3.09%
10 Year 3.89%

Qualifying Rate

Feb 3 5.29%

Current Inflation

Dec 2.3%

5 Year Bond Yield

Feb 3 1.36%

Next Bank of Canada Meeting
Mar 8th, 2012

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HST (Harmonized Sales Tax) – how it works, the simplified version

HST (Harmonized Sales Tax) – how it works, the simplified version

The basic concept of the HST is to reduce the cost to create product before you pay for it. At present time, PST is applied at every step along the path to the creation of product. PST is generally charged many times before the product finally reaches your possession. HST essentially removes the taxes on the product creation and in tune provides the product at a lower cost. Will we really see this price reduction? It’s doubtful on the small stuff but probable on large ticket items (example: wood for construction, etc). Believe it or not but that one piece of 2×4 wood gets taxed many, many times before reaching you. Here are some examples taken from the Government of BC website:

HST_How_It_Works_Web

  • The plan is to take effect July 1st, 2010
  • The cost is 12% (5% GST & 7% PST)
  • Lowering production costs could really help our exports
  • This does not apply to the re-sale homes
  • However, costs to purchase are taxed (example: appraisal, legal fees, etc)


Sooooooo, what do you have to say about this?

 

One Comment

  1. gov.bc says:
    March 30, 2010 at 9:38 am

    [...] for the HST, and that they paid the BC and Ontario provincial governments billions of dollars …HST (Harmonized Sales Tax) – how it works, the simplified …HST (Harmonized Sales Tax) – how it works, the simplified version The basic concept of the HST is to [...]