An overwhelming majority of members from the Mortgage Brokers Association of B.C. (MBABC) feel that that the HST will negatively affect the 2010 mortgage market.
An overwhelming majority of members from the Mortgage Brokers Association of B.C. (MBABC) feel that that the HST will negatively affect the 2010 mortgage market.
"It is evident that our membership feel the HST will take a toll on the real estate industry, particularly for new home buyers", said Joe Santos, president, MBABC, in a statement.
Despite continuing low interest rates, 75 per cent of respondents felt the HST would have an overall negative effect, with 25 per cent of those saying there will be a negative impact only at first, with a minor one thereafter.
One area in particular concerns the sale of homes over $500,000.
"A $500,000 sale typically generates a commission of approximately $19,000. The HST will add an additional $1,330 in tax", said Santos. "This affects home sellers perhaps to an even higher degree because the HST will be added to real estate commissions."
He added that this may force first time homebuyers, the "main driver[s] in the housing industry," to make less expensive purchases due to the higher transaction costs.
