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Toronto, Ontario, October 27, 2010 – An Ipsos Reid survey commissioned by the Ontario Real Estate Association (OREA) and released today reveals that 56 per cent of Ontarians mistakenly believe that the new Harmonized Sales Tax (HST) applies to the full purchase price of a resale home. In fact the HST is only levied on the various transaction fees associated with the purchase of a home that has been previously occupied (i.e. not a newly-built home).

Currently, the average price of an Ontario resale home is around $330,000. Therefore, this confusion leaves the majority of Ontarians wrongly believing that the HST will add more than $40,000 to the transaction cost. There is growing concern among real estate professionals that this misperception about the HST is dampening the Ontario housing market.

“We see it on the front lines every day. Clearly, Ontarians still don’t know what the HST covers and what is exempt,” said Dorothy Mason, President of OREA. “This is not helping the housing market, and it’s not helping the Ontario economy. This confusion means that many buyers think the cost of a resale home is tens of thousands of dollars higher than it actually is.”

The results of the survey conducted earlier this month were consistent across all age groups. However, there were some differences across other demographic categories. For instance, of those surveyed, half of the university graduates, 71 per cent of northern Ontarians, 59 per cent of those living in eastern and southwestern Ontario, and 54 per cent of GTA residents all mistakenly believe the HST applies to the full purchase price of resale homes.

“We’re doing our part to inform our clients, but we shouldn’t have to do it alone. We’re calling on the Ontario government to launch an immediate public awareness campaign to educate taxpayers and end the HST confusion,” said Mason. “For average homebuyers, learning that the HST does not apply to the full purchase price means a $40,000 saving they weren’t expecting.”

Ipsos Reid conducted the survey among 830 Ontarians from Ipsos’s online panel, between October 4^th and 11^th, on behalf of the Ontario Real Estate Association. The estimated margin of error is /-3.8 percentage points, 19 times out of 20.

The Ontario Real Estate Association represents 49,000 brokers and salespeople who are members of the 42 real estate boards throughout the province. OREA serves its REALTOR^® members through a wide variety of professional publications, educational programs, advocacy, and other services.

REALTOR^® is a registered trademark of REALTOR Canada Inc., a company owned equally by The Canadian Real Estate Association and the National Association of REALTORS^® and refers to registered real estate practitioners who are members of The Canadian Real Estate Association. Used under license.

OREA

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Buying or selling a home is a big business transaction. That's why it's so important to select, in advance, an experienced team of experts and professionals you can trust.  Your Realtor can also guide you in this process.

These skilled and knowledgeable individuals can vary, but usually include the services of a REALTOR^®, a lender, a lawyer, a home inspector and an insurance agent.

REALTOR^®
In Ontario, a REALTOR^® is a licensed real estate professional who is a member of a local real estate board as well as the Canadian Real Estate Association (CREA) and the Ontario Real Estate Association (OREA). This individual has successfully completed an intensive course of study and has skills, knowledge and experience that most buyers and sellers don't have. He or she must adhere to provincial law and abide by a National Code of Ethics, ensuring you a high level of service, honesty and integrity.

The REALTOR^® you select should be someone who works full-time in the real estate business and that knows the marketplace.  They can provide you with sound, effective advice. A REALTOR^® also acts as a mediator during the real estate transaction and can advice you on when to bring in the other experts or professionals.

Lender
Few people buy a home for cash. Most home buyers usually combine savings with money borrowed through a financial arrangement called a mortgage. Before looking for a lender, ask your REALTOR^® to explain the many mortgage options available today.

When deciding which financial institution or lender to deal with, start with your own bank, credit union or trust company. They already know who you are. Then shop around and compare what different lenders have to offer. You should begin your search for a lender when you start your search for a home.

Lawyer
Whether you are buying or selling, a lawyer will represent your interests. It's a good idea to have one on stand by from the start. Documents such as the agreement for purchase and sale are complex and should be reviewed by an experienced lawyer. It's also a good idea to have a lawyer review an offer to purchase before signing anything.

When an agreement is reached, your lawyer will ensure you receive valid title to the property and that it is clear of any registered claims. He or she will also calculate any taxes and adjustments that will compensate the seller for money already paid on services and other matters related to the property.

Home Inspector
As a buyer, you can avoid expensive surprises by bringing in a home inspector as a condition of your offer to purchase. The older the home, the more likely there will be problems. Being aware of any structural defects, will help you decide whether to buy the property at all, or negotiate a lower price to compensate for anticipated major repairs.

Insurance Agent
Creditors and mortgage lenders, almost without exception, require insurance on the home you buy. This insurance must be in place before any purchase can be finalized. Although you may be able to negotiate a better rate using the same insurance company you have other policies with, it still pays to shop around.

Hints for choosing your team

·     Referrals from your Friends/Family.

·     Interview a minimum of three individuals in each field of expertise before choosing the right one.

·     Check their qualifications and record by asking for references.

·     Question them in detail about their experience and familiarity with the kind of real estate transaction you require their services for.

·     Ask about their fees and how/when they expect to be paid.

·     Do you feel comfortable with these individuals. Are they friendly and approachable? Do they offer advice? If you feel uneasy, you may not use them as much as you should.

REALTOR^® is a registered trademark of REALTOR Canada Inc., a company owned equally by The Canadian Real Estate Association and the National Association of REALTORS^® and refers to registered real estate practitioners who are members of The Canadian Real Estate Association. Used under license.

OREA

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Thinking of buying or selling a home? If so you'll want to enlist the services of a REALTOR^® to help you navigate through this complicated business transaction from start to finish.

Your REALTOR^® has what it takes to help you every step of the way to achieving your home ownership dreams. And, he or she will be the top player on a team of experts who will protect your interests and ensure your real estate transaction goes smoothly.

The team
Depending on your needs, the other experts on your team will likely include a lender, a lawyer, and insurance agent and a home inspector. Your REALTOR^® will offer guidance as to how to proceed with your purchase or sale and when it's time to bring in the other experts and professionals on your team.

REALTORS^® role
A Full time REALTOR^® has vast amounts of real estate knowledge and the experience required to stay cool, even in a hot real estate market. In Ontario, a REALTOR^® is a licensed real estate professional who is a member of a local real estate board as well as the Canadian Real Estate Association (CREA) and the Ontario Real Estate Association (OREA). When you work with a REALTOR^®, you can expect strict adherence to provincial law as well as to a code of ethics ensuring you'll receive the highest level of service, honesty and integrity.

If you are buying a home, your REALTOR^® can help you determine how much house you can afford, offer advice on choosing the right neighbourhood and ensure your interests are best served during negotiations.

If you are selling a home, your REALTOR^® will help you determine a fair and accurate asking price for your home, develop a marketing plan, offer advice to help make your home more "saleable," screen potential buyers, show your home and, of course, negotiate on your behalf.

Lender
As you and your REALTOR^® begin looking for a home, it is wise to also begin looking for a mortgage lender. Your REALTOR^® can help you review various mortgage options to ensure you get the best rates and terms available. Although most buyers will start their search with their own bank or financial institution, it pays to shop around for more competitive rates. Often, your bank will match or beat a competitor's rate to keep you as a customer.

Lawyer
It is recommended that you have a lawyer waiting in the wings, preferably one who specializes in real estate transactions, to review complicated documents such as the Agreement of Purchase and Sale. If you are selling, it's wise to have a lawyer review an offer to purchase before you sign it. As a buyer, your lawyer will also ensure you receive clear title to the property and calculate the amount of land transfer tax you will be required to pay.

Home inspector
Having a home professionally inspected before you seal the deal to buy can help you avoid costly surprises after you move in. A home inspector will report any minor problems as well as major ones such as structural deficiencies that could affect your decision to buy at all or at what price.

Insurance broker
In order to secure financing, mortgage lenders require insurance on the home. Just like when you shopped for your mortgage, do your homework with insurance companies too. Insurance coverage and rates vary and you will want to be sure you get the coverage you want at a fair price.

Your MVP
Having the right team of experts on your side can mean the difference between a successful real estate transaction and a personal and financial nightmare.  When you select your team, start with a REALTOR^® - he or she will be your Most Valuable Player.

REALTOR^® is a registered trademark of REALTOR Canada Inc., a company owned equally by The Canadian Real Estate Association and the National Association of REALTORS^® and refers to registered real estate practitioners who are members of The Canadian Real Estate Association. Used under license.

OREA

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