First Time Home Buyer Grants
The great news for first-time buyers is that the government has various grants that you can take advantage of. If you are buying a home for the first time, here are some of the grants that could be available to you;
The Home Buyers’ Tax Credit.
A rebate of approximately $750, at current tax rates. You must claim this credit within a year of purchasing your first home, and it’s a non-refundable credit. However, you’re home must qualify first. To apply and receive this credit, you’d include it on your personal income tax return. This is a great credit that allows you to recover some of your purchase costs.
- · Your property must “qualify”. Your home or property can be either new or existing, including detached, semi-detached and mobile homes, or condos, as well as other types of homes
- · You must live in the home within a year of purchasing it
- · Your home must be registered in either yours, or your spouse’s, name before you can claim the tax credit
- · It must be the first home where you’re considered the “homeowner” for at least 4 years prior
- · You must have documentation for your purchase and be able to provide it.
The Land Transfer Tax Rebate
Ontario First-time home buyers can qualify for a rebate on their land transfer tax, up to a maximum of $4,000. If you live in Ontario, then you’re eligible for the Land Transfer Tax Rebate. This is rebate is offered on both the provincial and municipal levels.
For instance, if you live in the City of Toronto, this municipality offers the same rebate as the provincial government, which can be received in addition to the provincial Ontario rebate. The Toronto rebate covers up to a maximum of $4,475.
- · Be a Canadian citizen or permanent Canadian resident
- · Over the age of 18
- · Reside in the home within 9 months of purchase
- · Be a true first-time buyer, never previously owning a home before (this also includes your spouse/co-applicant)
The RRSP Home Buyer’s Plan
With the RRSP Home Buyer’s Plan, the government will allow you to withdrawal up to $25,000 from your RRSP if you are a first-time buyer, without it being considered as taxable income.
- ·Not have purchased or lived in a home within the last 4 years, that was “owned” by you or your spouse within
- · Be prepared to repay your borrowed down payment amount, which starts 2 years after purchase
- · Have the ability to pay of the borrowed amount within a 15-year period
The GST/HST New Housing Rebate
If you’ve purchased a new home, renovated an existing home, or rebuilt a home after a fire, and you paid GST or HST, then the GST/HST New Housing Rebate is a possible option for you.
- ·The home must be your primary residence (this also includes floating, mobile and modular homes)
- · If you are a Canadian who qualifies, you can receive the GST portion of this rebate from the federal government. On top of this, if you live in Ontario then you’d also be eligible for the HST portion if you renovated or purchased a new home
To learn more about these grants, plans, and rebates, please contact me any time.