First Time Home Buyer Programs in Ontario

| April 12, 2014
first time home buyer programs

When it comes to purchasing your first home, the task can seem daunting. There are many first time home buyer programs in Ontario you may not know about. Toronto and the surrounding GTA is full of great properties, and chances are you’ve researched ways to save, been to the banks, consulted a realtor, or perhaps have recently purchased a home.

Congratulations on this great milestone!

Did you know that as a first-time homebuyer in Ontario, you’re eligible for certain tax-refunds? Federal and provincial first time home buyer programs exist exclusively for people like yourself.  Let’s take a look at some of the options:

First Time Home Buyers RRSP Plan

The First Time Home Buyers RRSP Plan allows first time buyers to dip into their registered retirement savings plan for up to $25,000 to build or buy a home. The withdrawn sum must be repaid within 15 years. However, Other restrictions apply.

To qualify:

  • The purchaser(s) must not have not owned a home in the last 48 months

 

First-Time Home Buyer (HBTC) Tax Credit

Since being instated in 2009 first-time home buyers can be eligible to receive the First-Time Home Buyer (HBTC) Tax Credit, a non-refundable personal tax credit based on $5,000 for first time home buyers. It’s calculated by multiplying the lowest personal income tax rate for the year by $5,000. For example if it was 15% in 2010, the credit will be $750.  Note that this program is a separate from Home Buyers.

To qualify for the HBTC:

  • Purchaser(s) have purchased a qualifying home*
  • Purchaser(s) did not live in another home owned by themselves (or co-purchaser)

*A qualifying home is classified as existing homes and those being constructed including single-family homes, semidetached homes, townhouses, mobile homes, condominium units, and apartments in duplexes, triplexes, fourplexes, or apartment buildings.

To claim this tax credit look to your personal income tax return from the year of purchase, line 369 is incorporated into the Schedule 1, Federal Tax to allow you to claim the credit.

Ontario First Time Home Buyers Land Transfer Tax Credit

As a first time home buyer in Ontario you are eligible to receive the Ontario First Time Home Buyers Land Transfer Tax Credit, a tax credit up to $2000. This means eligible buyers will not have to pay a land transfer tax on homes up to $227,000

  • In order to qualify
  • the land must be owner occupied; and
  • the purchaser(s) cannot have owned a house, or interest in a house, regardless of location.

To instantly receive this rebate, upon purchasing your first home, advise your lawyer ahead of time that you qualify to receive the rebate.

Toronto First Time Home Buyers Land Transfer Tax Rebate

If you are a first time home buyers in the GTA, you may be eligible to receive the Toronto First Time Home Buyers Land Transfer Tax Rebate up to $3,725. Realizing the higher property prices in Toronto, the tax rebate permits first time home buyers to purchase homes valued as high at $400,000 without having to pay any Toronto land transfer tax.

To qualify:

  • newly constructed or re-sale residential property
  • property must be owner occupied

If you qualify claim your rebate, ask your lawyer to claim the rebate electronically  on your behalf through Teraview version 6.0 software upon transferring and registering your deed.

Finding the right program can be hard, but with mortgages.ca it’s easy. Lastly, Contact us today to find out more about first time home buyer programs and to get the lowest rates on your next mortgage.

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