A common misconception is that Ontario's harmonized sales tax is applied to the purchase price of a resale property. There is no HST on the price of resale homes and new homes up to $400,000.00. In fact the HST applies only to the services such as lawyers fees, real-estate commission and home inspection services. Prior to the HST these services were subject to the GST. Generally any gains made on the sale of a principal residence are not subject to taxes. Here is a link to a 2 minute utube explanation. http://www.youtube.com/oreagr Call Ted if you have any questions.