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Page THE HILLS Wednesday January 1901 Housing prices wont go through the roof On January 1 1991 the federal government stops charging the old Federal Sales Tax FST and applies a new lax on most goods and services GST If you are thinking about buy ing a house in don t be alarmed Housing prices will not go through the roof because of the GST Few Canadians are aware thai they have been paying In fact this tax has been collected for over 60 years Currently is charged at on building materials such as lumber bricks doors and windows and at 13 5 on products such as paint and wallpaper This existing sales tax counts for just over of the overall cost of a new house The GST replaces the and applies to selling of newly constructed of substantially renovated houses and mobile homes Under the new tax system previously untaxed land costs will be taxed so the impact of ihe new tax will depend on the pro portion of the selling price ihat is made up of land cost This amount vanes widely across For example in Edmonton it averages 2 1 in Vancouver it averages More of all new home buyers will qualify fora GST housing rebate Of tax will be paid back on houses priced up io Purchasers of higher houses will receive a reduced rebate At and above there will be no rebate The builder or seller of your new home will deduci the amount of the rebate from the GST owing when you purchase your house ing from the 1 GST the effective tax rate on most houses will be 4 5 The GST will not apply sale houses residenfal rents or fees so no will be issued Why arc all ihcse complicated fig tires important Simple if consumers don know what happening with GST they won t be able Io ask ven dors intelligent questions To assist Canadians in making informed buying decisions an independent GST Con Information Office has been labhshed lis main purpose is look after the interests of consumers by providing reliable information about the GST If you have any questions about how the GST will affect housing call toll free I 800 668 for a copy of a brochure called The Goods and Services Tax and Housing Estimated fmpacl of GST on selected housing prices across Canada Urban Selling Share of Savings from Amount Amount Net change in sales area price land in total selling price FST removal of GST of rebate tax due to GST St St John 127 4 584 3090 t09 Halifax 99000 2 0 Montreal 129 4 8 740 1449 1 1 Toronto 41 9026 5712 1 7 Winnipeg 88 2 141 780 09 Edmonton 122 000 4 362 964 909 07 Vancouver 5 14 305 1 Estimated by the GST Consumer Information for standard new homes commonly found in each of seven metropolitan areas from data supplied by Canada Mortgage and Housing Corporation and Statistics Canada GST will affect real estate transactions If you are planning to buy a house in you re probably in how the Goods and Services Tax GST will affect prices The short answer is not much You II pay no GST on resale nous because federal sales taxes FST have already been paid On new and substantially renovated houses the per cent GST will replace the FST A GST will reduce taxes on new homes selling for or less So what does this mean It means that most of us will about more for a new house we buy after January I 1991 Bui not end of the story If you ve ever gone through the purse draining ex perience of buying a home you II know thai the actual purchase price is jusi thin edge of the wedge Your guide shopping with the GST All sons of real estate transaction fees will flood through the door And as mentioned while housing prices alone should remain constant ail of these extras will for the first time be So for example lawyers fees surveys inspections appraisals and moving fees will all be subject a 7 per cent tax starting in 1991 So will the real estate commissions charged by your financial services like mortgage payments and interest on loans will not be subject to GST Electricity gas telephone and cable TV will also be at per cent Waier sewage and property taxes will all be exempt To assist Canadians in making in formed buying decisions an dent GST Consumer Information Office has been established Its main aim in life is to look out for in terests of consumers by providing reh able information about the GST and prices because the best protection against opportunistic pricing is a smart informed shopper If you have questions about how the GST will affect housing prices call toll free 1 2122 for a copy of a brochure call The Goods and Services Tax and Housing Sample GST rebates for new homes purchased from a builder Treatment under GST Amount of of New Housing GST New Housing of home GST paid Innate Rebut Full 2 10500 Full 14 000 Full Ml Full Full 7 560 24 500 Full 8 750 maximum 000 Declining 4 Zero Zero Survey Completed Friday January MORTGAGE RATES ANNUAL INTEREST SIX MONTH ONE YEAR TWO TEAR THREE TEAR ram YEAR FIVE TEAR TRUST COMPANIES Canada Trust 12 12 12 Municipal Trust 12 50 12 25 12 12 12 NRSRoyal Trust 1250 CHARTERED BANKS Bank of Commerce NA 1175 12 12 12 Bank of Montreal 12 12 12 Bank of Nova Scotia NA 50 12 50 12 Royal Bank 12 12 00 12 12 12 12 Toronto Dominion 12 12 12 12 12 00 This survey was prepared to help the Herald readers track weekly Bank and Trust Company rates Active families benefit with home information centre Parents help your fam ily Stay Alert and Stay Safe with an Information Centre in your home Whether it s a centrally located bulletin board or a space on the kitchen fridge every home should have an Informa tion Centre to keep family members aware of each others activities and whereabouts at all times Items to consider as a part of your Information Centre include A map of your neighbour hood with the homes and phone numbers of your childrens fnends neighbours and relatives clearly marked on it in black or red A chart with each family member Eachname should be followed by a space for everyone to where they are going and when they will be back Phone numbers of where children and parents are and where they can be reached at all times Other numbers to include your work number phone number of a neighbour or adult your child can call if you are able during an emergency your Doctors number phone numbers of your childrens fnends and an emergency number for the police and fire department eg These numbers should all be clearly visible If your children walk to school consider making a map of their route to school a part of your information centre This map should include the streets and places your child will pass on their way to and from school Identify places on this map that could potentially be unsafe eg lonely parks woods parking lots abandoned buildings or un derground garages Discuss these places with your child Stay Alert Stay Safe is a national charitable organization whose educational program is supported by Canadian Tires Child Protection Program The Stay Alert Stay Safe program designed to build childrens confidence and enable them to make alertness second nature by keeping radar up so they can identify potentially unsafe situations or avoid or take ac tion to protect themselves Call your local police to make sure your childrens school knows about this program or write Stay Alert Stay Safe Floor Street Toronto Ontario 2V8