Those who will be spending time in the Ontario real estate market this year best familiarize themselves with the term Harmonized Sales Tax. As of July 2010, Ontario residents will be subject to this new taxation which blends together the GST and PST into a combined tax. Though the purpose of this change is to help stimulate the provincial economy, many Waterloo Ontario real estate experts believe this new tax will have a deflating effect on the real estate market.

Though there are several upsides to the implementation of HST, there are a great deal of downsides for buyers and sellers alike, particularly if you're the type who shops regularly on Bloor Yorkville. Any home bought after July with a price tag of $500,000 or more will be subject to an additional 8% tax on your purchase, tacking another $30,000 to the price of your home. Those selling their homes, regardless of the price, will be have to pay 13% HST of their sales commission. As most Mississauga homes for sale, as well as luxury condominiums, are priced at over $500,000, you can imagine the effect this will have on the local real estate market, not to mention property in the Greater Toronto Area.

For those outside of the bigger cities, however, there is a benefit to buying a home under an HST system. Any property bought for under $400,000 will benefit from a 6% tax rebate on the sale, allowing buyers to actually save money on the purchase of a home for sale in Markham. There is also a rebate available for those buying or building newly constructed or significantly renovated homes.

In addition to these changes, new buyers need to be aware that there will be several changes around the real estate market as well. Economists are predicting that mortgage rates will rise after July, adding a long term cost to the purchase of your home. Some economists are also predicting that the federal government may increase the minimum down payment from 5% to 10% to help protect consumers from taking on debts they simply cannot handle, causing those who may have been on the verge of buying their first home to either wait while their savings increase or head back to the North York MLS listings to find a cheaper home.

Not surprisingly, many people are scrambling to find a home now, causing a swell in the market because of these impending changes, which is great news for those wanting to sell their home. The rules of the real estate game are about to change, so if you are thinking of buying a new home this year, talk to your real estate agent and see whether it's best to buy now or after the summer.