There are fantastic government incentives currently being offered for first-time buyers!
Most recent are the two rolled out in the Federal Budget this past January.
-First is the First-Time Home Buyer's Tax Credit, which helps with the related closing costs (lawyer fees, land transfer tax) when purchasing a home. It is a 15% credit on a maximum of $5,000 of the related costs which means a maximum tax relief of $750 to be claimed in the same taxation year of the home purchase.
-Secondly, you are now eligible to withdraw up to $25,000 from your RRSPs under the Home Buyer's Plan to buy or build your principal home. The funds must be in an RRSP account 90 days prior to the withdrawal and it is tax free as long as the funds are repaid back into an RRSP account over the next 15 years.
The largest sums of money due on closing are the Land Transfer Taxes so the following rebates are truly phenomenal!
-You are now eligible to receive a rebate up to $2,000 of the Provincial Land Transfer Tax on both new AND resale homes. This is the equivalent of the tax payable on a $227,500 property.
-If you purchase in the city of Toronto, you may qualify for a rebate of up to $3,725 on the Toronto Land Transfer tax which is the equivalent of the tax payable on a $400,000 home.
Click HERE for calculator
Good luck and happy house hunting!
By Johanna Pigeon, Broker
as published in www.prettysavvy.ca
Sources: Toronto Real Estate Board