With the continuous increase of housing prices, it’s tough for anyone who is looking for a new house at this moment. Most buyers don’t know that the government has released some programs that can help them save a ton of money. So, what are these programs about? Let’s find out here.
Land Transfer Tax Rebate
If you are a first-time home buyer in Ontario, you might be eligible for a refund of all or part of the land transfer tax, which is usually between 0.5% and 2.0% of the purchase price of the property. The maximum amount of the refund that you can claim is $4,000.
RRSP Home Buyers’ Plan
First-time home buyers can use up to $35,000 from their RRSP to help finance their down payment on a home. They need to repay the amount withdrawn back to their RRSP within 15 years, starting from the second year after they made the withdrawal. If repayments are made when due, there is no tax implication or penalty for withdrawing the funds.
GST/HST New Housing Rebate
The GST/HST New Housing Rebate offers money back to individuals to recover some of the GST or the federal part of the HST paid for a new or substantially renovated house. The exact amount varies, depending on the house in question.
First-Time Home Buyer Incentive
For this program, individuals need to meet minimum insured mortgage down payment requirements. If you are eligible, you can receive the incentives that cost 5% or 10% for a first-time buyer’s purchase of a newly constructed home, or 5% for a first-time buyer’s purchase of an existing home.
To find out if you are eligible for these programs, please feel free to call me at (416) 830.9039 (Usman Khan) for more information.