Government Programs for First Time Home Buyers

 

 

Land Transfer Tax Refund for First-time Home Buyers

First‐time buyers of new and re‐sale homes are eligible to receive rebates of the provincial land transfer taxes. The maximum provincial land transfer tax (LTT) rebate for first‐time buyers is $2,000.  For more information go to:

http://www.fin.gov.on.ca/en/refund/newhome/index.html

OR contact Ontario Ministry of Finance at:  1‐800‐263‐7965

 

The provincial Land Transfer Tax for residential properties is calculated as follows:

- O.5% of the amount of the purchase price up to and including $55,000,plus

- 1% of the amount of the purchase price between $55,000 and $250,000 plus

- 1.5% of the amount of the purchase price between $250,000 and $400,000, plus

- 2% of the amount of the purchase price above $400,000

 

Home Buyers' Plan (HBP)

The Home Buyers’ Plan (HBP) allows you to withdraw up to $25,000 from your Registered Retirement Savings Plan (RRSP) tax-free to use for a down payment.  If you buy a home with your spouse or another person you could both withdraw $25,000 under the plan. The withdrawn amount must be repaid within 15 years, subject to a minimum annual repayment that is 1/15 of the amount withdrawn. You must meet certain conditions to be eligible for the HBP. For more information go to:

http://www.cra-arc.gc.ca/hbp/

 

First Time Home Buyers' Tax Credit  (HBTC)

The HBTC assists eligible first-time home buyers with the costs related to the purchase of a home, such as legal fees, disbursements and land transfer taxes, which are a particular burden for first-time home buyers, who must also save for a down payment.  The HBTC provides a 15% credit on a maximum of $5000 of home purchase costs, meaning a maximum relief of $750. To obtain the tax credit, complete line 369 on your personal income tax return. It is claimable for the taxation year in which the home is acquired.  For more information go to:

http://www.actionplan.gc.ca/en/blog/first-time-home-buyers-tax-credit-explained

OR contact Services Canada at: 1-800-662-6232

Sarah Van Alphen

Sarah Van Alphen

Sales Representative
CENTURY 21 Heritage House Ltd., Brokerage*
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