Are you in the market for your first home? What an exciting time! It may seem like buying a home for the first time would be more difficult, but the good news is, that’s not really true. The government actually wants to see people buying homes and they have a few different incentives to help you make that possible.
You may not have to be buying your first home to qualify for these benefits either. To be considered a first time home buyer by the CRA (Canada Revenue Agency) you cannot have occupied, as a principal place of residence, your own home from January 1, of the fourth year from the year of your withdrawal, ending 31 days prior to the withdrawal of your RRSP fund, your spouse cannot have owned a home where you resided together during the same period described above; and you must be a resident of Canada.
First Time Home Buyer’s Credit
The First Time Home Buyer’s credit allows you to claim up to $5,000 for the purchase of a qualifying home on your personal tax return on the year of purchase. It turns into about $750 of savings at tax time.
The Home Buyers Plan (HBP)
The Home Buyers' Plan (HBP) allows you to withdraw up to $25,000 in a calendar year from your registered retirement savings plans (RRSPs) to buy or build a qualifying home for yourself or for a person related to you with a disability.
To qualify for this program, you must be considered a first-time home buyer and you must have a written agreement to buy or build a qualifying home for yourself. Or you must have a written agreement to buy or build a qualifying home for a person related to you with a disability, or to help a person related to you with a disability buy or build a qualifying home.
You also must intend to live in the qualifying home, as your principal place of residence within one year after buying or building it. If you buy or build a qualifying home for a person related to you with a disability, or help a person related to you with a disability buy or build a qualifying home, then that person must occupy the qualifying home as his or her principal place of residence as well.
What’s really great about this, is if you and your spouse are both first time buyers you can both borrow up $25, 000 giving you a potential $50, 000 to work with.
Land Transfer Tax Rebate
In Ontario you can receive a rebate on some of the land transfer tax you pay.
GST/HST New Housing Rebate
You may qualify for a rebate on some of the GST or HST that you paid on the purchase price or cost of building your new house.
If you are ready to purchase your first home, we can help you get the best rates and terms on your mortgage. Call us today at 416-621-1300.
When we say YES! We stand behind our promise.®™