As most of you probably know, buying a home in the GTA is becoming increasingly more expensive. Not only can it be difficult for the average homeowner to buy a new home in today’s real estate market, but it is even more challenging for first-time home buyers. Luckily, the Ontario government has a number of programs in place to help individuals who are buying a home for the first time. If you’re are in the market to buy your first home, or know someone who is, learning about these programs for first-time home buyers could save you or someone you know thousands of dollars down the road.
First-time Homebuyer’s Tax Credit
This program allows first-time homebuyers to recoup some of the costs associated with buying their first home such as inspection fees, legal fees, and additional closing costs. The credit is valued at $750.00, is non-refundable and must also be claimed within the first year of buying your new abode. You can learn more about this tax credit by visiting the Canada Revenue Agency website.
RRSP Homebuyer’s Plan
If you haven’t purchased a home within the past 4 years, you may be eligible for the RRSP Homebuyer’s Tax Credit. This program allows you to borrow up to $25,000 tax-free from your RRSP savings to use for your down payment. If you are purchasing your home with a partner and they are eligible as well, you can have a combined total of $50,000 to use for your down payment. You must begin repaying the amount you borrowed two years after you buy, and it must be fully repaid over a 15 year period.
GST/HST New Housing Rebate
This program offers to rebate homebuyers who buy a new (or substantially renovated) home, or who have constructed their own home. Eligible individuals will be able to recover some of the GST, or the federal portion of the HST, on their new home purchase or construction project. To learn more and find out if you may be eligible visit the Service Canada website.
Land Transfer Tax Rebate
First-time homebuyers in Ontario can receive a rebate on some of the land transfer tax they pay when purchasing their first home. If you are purchasing your first home in Toronto, you are also eligible for a rebate on the city’s land transfer tax, which can help you save even more money. The Ontario Liberal Government recently doubled the maximum land transfer tax rebate to $4,000.00 in an effort to help first-time homebuyers get into the real estate game.
I believe that every new homeowner should take the time to research what financial assistance programs they may be eligible for. As you can see, there are numerous ways to help make buying your first home more feasible and affordable. If you have any questions or are interested in purchasing your first home in the Durham region, particularly Clarington, Bowmanville or Orono, please feel free to contact me and would be more than happy to speak with you.