How the Ontario HST Will Impact You in 2010?. This new tax will take effect on July 1, 2010. The HST combines the Provincial Sales Tax of 8% percent with the Federal GST Tax of 5% percent, to create a new "harmonized" total tax of 13% percent. This new tax will be any goods or services which hitherto only had one or the other tax applied. The HST will result in a 13% tax on new home construction. In Ontario there is no HST  payable on the sale of a resale home (residential). The single largest dollar amount exchanged is not taxable under HST. Home buyers and sellers will have to pay HST on a range of services associated with the real estate transaction such as legal fees, moving costs, real estate commissions and home inspection fees. Currently, consumers only pay the 5% Goods and Services Tax (GST) on these services. After July 1, 2010, if you are a seller, there will be a 13% percent tax payable on the real estate commission you pay. Lawyer's fees for both Buyers and Sellers will also be subject to the 13% percent HST,  The cost of a Condominium Status Certificate should remain unchanged as the $100 fee is the maximum including all taxes which can be charged under the Condo Act.
As a buyer Home Inspections  will be subject to the 13% percent HST as will the cost of movers. The cost of the CMHC premium for "high-ratio" mortgages has traditionally been taxable for PST - this amount will now be taxable for the full 13% percent HST. 
A press release from the Ontario Real Estate Association earlier this year summarized some of the changes which will take place, - for a resale house priced at $360,000, the HST would add over two thousand dollars in new taxes to closing costs. Please note, these taxes are in addition to the Land Transfer Taxes which exist for both the Province and the City of Toronto. 
Many market watchers are predicting a flurry of activity leading up to the July 1, 2010 implementation date, as buyers and sellers both try to avoid paying the tax. Which is a relatively minor increase, the rela spur to buy in the next 3/4 months should be the threatened interst rate increase whhich some analysts predict to be a full 1% by year end.