Ontario Home Ownership Savings Plan (OHOSP)
The Ontario government created this program to encourage first-time homebuyers into the real estate market. The Plan may be opened at any financial institution, including the Province of Ontario Savings Office. It is a savings account, earning interest at the rate the institution is offering, and since the OHOSP is not a tax shelter, any interest earned is taxable. Depending on your income, a maximum annual contribution to the plan could give you an Ontario Tax Credit of up to $500 ($1,000 per couple) on your income tax return. To qualify, your net income must not exceed $40,000 ($80,000 per couple). There is no limit to how much you contribute, but the credit is based on a maximum contribution of $2,000 ($4,000 per couple) per year. You may make contributions for up to 5 consecutive years, and once it's closed, you must purchase within 2 years after that.