3 Programs For Ontario First Time Home Buyers

If you are a first home buyer in Ontario, it is the perfect time to think about. With proof lower rates of interest, constant home prices and a collection of good programs made particularly for first time home buyers.

The 3 main programs available for first time home buyers are the First Time Home Buyer RRSP Plan, the Ontario Land Transfer Tax Credit and the Toronto Land Transfer Tax Credit. Both the RRSP home buyers program and the Ontario land transfer tax credit are obtainable state wide. However, if you are buying home in Toronto, the Toronto land transfer tax credit is the only grant available to you . No other places in Ontario at this time own their own municipal land transfer tax.

Here is a summary of the programs:
First Time Home Buyer RRSP Plan (HBP) - This program enables a first time home buyer to withdraw up to $25,000 from their RRSPs to buy or construct a home. The withdrawn amount must be repaid within 15 years and is subject to a minimum annual repayment of 1/15 of the amount withdrawn. If the full $25,000 is removes, the lowest yearly repayment will be $1,667. If less than the minimum is repaid in any particular year, the balance is added to the taxpayer's income. This is a good program for people who have RRSP's ready but do not own enough money for a down payment.

The Ontario Land Transfer Tax Credit - This loan helps to repay the expenses of the regions land transfer tax to highest of $2000. The first time home buyer may claim the complete greatest sum or a proportion of the greatest reimburse sum. Thus, the first time home buyer is able to purchase a home of worth $227,500 where he is exempted from paying any land transfer fees. Any amount higher than $227,500 is taxed a rate of around 1.5%. To be eligible the property has to be owner occupied.

The Toronto Land Transfer Tax Credit - This is applicable for homes that are purchased only in Toronto which is quite as same as Ontario Land Transfer Tax Credit. The refund money is even more at $3725. However, if first time home buyer wants to purchase a home in Toronto which is worth $400,000 will not be obliged to pay any Toronto land transfer tax . Any excess money higher than $400,000 will be taxed at a rate of 2%. To be eligible for this program, you need to check the property has to be occupied by the owner of the home.

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