Ok here comes some good stuff. So hopefully you've read my past blogs about first time home buyers, and if you've made it onto this one, I know you're serious about becoming a home owner. Good choice! So I just wanted to list a few benefits and programs that you SHOULD be taking advantage of, to assist you in your purchase:
- Home Buyers Plan(HBP): Do you have RRSP's? If you were fortunate enough to have someone tell you to start a Registered Retirement Savings Plan as soon as you started working(I wasn't!), then this program is something you need to consider! In this program, you are allowed to borrow up to $25 000 of your RRSP's to put towards the purchase of your first home! It gets better...this is TAX FREE! There are rules that accompany this, such as, you must pay it back within a certain time frame. This is a very intelligent way to invest your RRSP's. This can get you your down payment you need for your mortgage, assist with closing cost, and even help with renovations! Don't shrug this one off, if you can take advantage of this program, DO IT! http://www.cra-arc.gc.ca/hbp/
- Land Transfer Tax Refund(LTT): Do I have to pay land transfer tax? Unfortunately the answer to this question generally is a "yes", however, you first time home buyers, listen up! On the purcase of your first home, you can apply to the government for a tax refund, which can be up to $2000! Definitely a helpful benefit every first time home buyer should be taking full advantage of! http://www.fin.gov.on.ca/en/refund/newhome/
- First Time Home Buyers' Tax Credit: Can I claim my first home purchase on my income tax return? YES you can! Yet another incentive offered by the government to the first time home buyer. You can clam up to 5000$ of your purchase on your income tax return for the year you bought your house. This will give you a 750$ REFUND when you file your taxes at the end of the year! This is so simple, and if the government willing to offer this, you must take advantage of this! http://www.cra-arc.gc.ca/gncy/bdgt/2009/fqhbtc-eng.html
Ok, that's a lot to take in, so I will leave you all with this, if you'd like more information on the subjects, please visit the links provided at the end of each blurb. Purchasing your first home is NOT an impossible task, and with these benefits and programs made available to you, and with the right person guiding you along the way, you CAN become a home owner! So anybody who's even more serious about ownership after this blog, please contact me, I WILL be that person who guides you along the way!