hat government programs are available?
A: First-Time Home Buyers’ Tax Credit
First-time home buyers may be eligible for a 15 per-cent income tax credit for closing costs.
The First-time home buyers’ credit provides 15% credit on a maximum of $5,000 of home purchase costs (e.g. legal fees, land transfer taxes, etc.) meaning tax relief of $750.
An individual will be considered a first-time home buyer if neither the individual nor the individual’s spouse or common-law partner owned and lived in another home in the calendar year of the home purchase or in any of the four preceding calendar years.
RRSP Home Buyers’ Plan
Each buyer of a home can withdraw up to $25,000 each from their own RRSP and apply the funds to the purchase without incurring withholding tax on these amounts.
Funds will need to be paid back to the RRSP over a 15 year period. This program applies only if you have not owned and occupied the same home for the past five years.
Land Transfer Tax Rebates
(Provincial and Toronto)
First-time buyers of new and re-sale homes are eligible to receive rebates of the provincial and Toronto land transfer taxes. The maximum provincial land transfer tax (LTT) rebate for first-time buyers is $2,000 and the maximum Toronto LTT rebate is $3,725. (An easy-to-use calculator is available at www.NotHomeBuyingTax.com)
First-time buyers and their current spouse cannot have ever owned a house anywhere in the world at anytime.