To everyone who is new to Canada or purchasing their first home as an adult in province of Ontario there are certain benefits offered by the government of Ontario to First-time home buyers should definitely take advantage of!
Land Transfer Tax Refund:
First time home buyers are eligible to receive a land transfer tax refund of $4000 at time of closing. Since land transfer tax is part of the closing costs and is based on amount paid for the land or against the fair market value of the land or the property. Basically, with this rebate First-time home buyer will not be paying any tax on the first $368,000 of the home price.
Home Buyer’s Plan:
As a first time home buyer, one individual or both spouses are eligible to use their existing RRSP towards their down payment of the home under Home Buyer’s Plan to a maximum of $25,000 for each individual. In order words total of $50,000 can be withdrawn from RRSPs to be used as down payment for a couple buying a property for the first time together. Since this is an interest-free loan that must be paid back over in 15 years.
First-Time Home Buyer’s Tax Credit:
If you have not owned a home within the last four years, you may be eligible for a tax credit. This credit is calculated based on federal income tax rates. For an eligible individual, the credit will provide up to $750 in federal tax relief for homes acquired after January 27, 2009
This benefit isn’t exclusive to first-time buyers, but they can certainly benefit from it! There are a variety of rebates offered time to time by government of Ontario to help the home owners to take advantage of by converting home into energy efficient.
Finding a dream home for First time home buyers can be daunting. A good qualified Realtor will not only find a home based on your criteria but he will educate you with all the necessary steps which will help you make the right decision for yourself. Since home buying is likely the biggest investment one would make in their life time, it must be handled by an industry expert who will negotiate in your favor with the sellers or their agents.
For more information, you can contact REALTOR® Richi Khanna who is successfully working as a full service Real Estate Agent in Greater Toronto Area for a long time. He is passionate about servicing his clients and finding solutions to their real estate problems & inquiries.
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