Valuable Information for First Time Buyers

Land Transfer Tax rebate (Toronto): In the City of Toronto, if you are a first-time purchaser of a newly constructed or re-sale residential property, for conveyances and dispositions of an eligible home there is an available rebate of up to $4,475.

When you buy land or an interest in land in Ontario, Land Transfer Tax is paid. First-time homebuyers of an eligible home may be entitled to a refund of all or part of the tax. The maximum amount of the refund is $4,000.

Home Buyer’s Plan (HBP): This program allows a withdrawal of up to $25,000 tax-free from your registered retirement savings plans (RRSP) to put towards the purchase of your home. With this plan you are essentially lending yourself money from your RRSP. It must be paid back in installments over the next 15 years or face tax consequences. For example, if both you and your partner are purchasing a home for the first time, you can each access $25,000 for a total of $50,000.

First Time Home Buyer Tax Credit (HBTC): A $5,000 non-refundable tax credit to assist first-time home buyers with additional costs associated with purchasing a home. This includes legal fees, HST on newly constructed homes, disbursements and land transfer taxes.

GST/HST New Housing Rebate: First-time home buyers in Ontario are eligible for an HST tax rebate through the Federal Government. Guidelines vary, so it’s best to check out Service Canada’s website. Buyers of investment properties in Ontario are eligible for the Residential Rental Rebate.

Note: The information posted here is for general purposes only and is not to be misconstrued as legal or financial advice.