I'm buying a home from a develpoer, and I qualify for the first time homebuyer rebate. I'm wondering how Ontario's HST rebate for first time homebuyers is calculated.
The paragraph below is taken from http://www.rev.gov.on.ca/en/notices/hst/02.html and I thought I'd check with you financial gurus, because its not entirely clear.
The effect of the enhanced rebate would be to apply the provincial portion of the single sales tax at a rate of two per cent on the first $400,000 of the purchase price of a new home and at a rate of eight per cent on the portion above $400,000. The rebate would be calculated as 75 per cent of the provincial portion of the single sales tax payable on the purchase of a new home, up to a maximum rebate of $24,000.
What exactly is the 'provincial portion'? Is it the old PST? (8% of purchase price)?
So does that mean if I'm buying a place for $300,000 before taxes, the rebate would be
0.75 x 0.08 x $300,000 (to a max of $24,000) = $18,000 rebate ?