First-time homebuyer programs in Toronto and the GTA
Buying your first home is an exciting milestone! But, a lot of people also find it to be a daunting process. As a mortgage broker, I’m here to help you in securing the right mortgage. Additionally, I consider myself to be an educator. My many years in the financial industry mean I can’t just look at your home purchase as an isolated transaction. I believe it’s a key component of your financial well being. So I hope to also be a resource for you. A big part of this is to make sure you don’t miss out on the various first-time homebuyer programs available to first-time buyers in Toronto and the greater Toronto area. Whether you’re definitely planning to buy a home in the next year, or just starting to explore your options, here’s a list of the various programs which you can take advantage of.
The federal Home Buyers’ Plan (HBP)
If you’re a Canadian first-time home buyer, you can withdraw up to $60,000 from your Registered Retirement Savings Plan (RRSP) to put towards the purchase of a home. You can take this money out tax-free, but you have to pay it back over the next 15 years. This program can be a great way to boost your down payment and reduce your mortgage amount. I have several posts you can check out to learn more about strategies for making the most of your RRSP.
Ontario Land Transfer Tax Rebate
Possibly the best of the first-time homebuyer programs are the land transfer tax rebates. If you’re a first-time home buyer in Ontario, you’re eligible for a rebate on the provincial land transfer tax. This rebate can be up to $4,000, which can significantly reduce your closing costs.
Toronto Land Transfer Tax Rebate
If you’re buying a home in Toronto, you may also qualify for an additional rebate on the municipal land transfer tax. The rebate is up to $4,475.
First-time Home Buyers’ Tax Credit (HBTC)
The First-Time Home Buyers’ Tax Credit provides up to $750 in tax relief to help with the costs associated with purchasing a home. This credit can be claimed on your income tax return in the year you purchase your home. The credit is designed to assist first-time home buyers with the extra costs associated with buying a home, like legal fees, disbursements and land transfer taxes. You qualify if neither you nor your spouse (or common-law partner) have owned and lived in another home for the past five years. If you have a disability – or are purchasing the home for a relative with a disability – you may also qualify for the program, even if you are not a first-time buyer.
First Home Savings Account (FHSA)
The tax-free First Home Savings Account is a new program that allows you to save up to $40,000 towards their home purchase. Contributions to the FHSA are tax-deductible, and withdrawals for the purpose of buying a home are tax-free. This program combines the benefits of an RRSP and a Tax-Free Savings Account (TFSA).
Please get in touch if you’d like to chat about your plans to buy your first home. In the meantime, happy house hunting!
Make sure you remember these perks for first-time homebuyers!
First-time homebuyer programs in Toronto and the GTA
Buying your first home is an exciting milestone! But, a lot of people also find it to be a daunting process. As a mortgage broker, I’m here to help you in securing the right mortgage. Additionally, I consider myself to be an educator. My many years in the financial industry mean I can’t just look at your home purchase as an isolated transaction. I believe it’s a key component of your financial well being. So I hope to also be a resource for you. A big part of this is to make sure you don’t miss out on the various first-time homebuyer programs available to first-time buyers in Toronto and the greater Toronto area. Whether you’re definitely planning to buy a home in the next year, or just starting to explore your options, here’s a list of the various programs which you can take advantage of.
The federal Home Buyers’ Plan (HBP)
If you’re a Canadian first-time home buyer, you can withdraw up to $60,000 from your Registered Retirement Savings Plan (RRSP) to put towards the purchase of a home. You can take this money out tax-free, but you have to pay it back over the next 15 years. This program can be a great way to boost your down payment and reduce your mortgage amount. I have several posts you can check out to learn more about strategies for making the most of your RRSP.
Ontario Land Transfer Tax Rebate
Possibly the best of the first-time homebuyer programs are the land transfer tax rebates. If you’re a first-time home buyer in Ontario, you’re eligible for a rebate on the provincial land transfer tax. This rebate can be up to $4,000, which can significantly reduce your closing costs.
Toronto Land Transfer Tax Rebate
If you’re buying a home in Toronto, you may also qualify for an additional rebate on the municipal land transfer tax. The rebate is up to $4,475.
First-time Home Buyers’ Tax Credit (HBTC)
The First-Time Home Buyers’ Tax Credit provides up to $750 in tax relief to help with the costs associated with purchasing a home. This credit can be claimed on your income tax return in the year you purchase your home. The credit is designed to assist first-time home buyers with the extra costs associated with buying a home, like legal fees, disbursements and land transfer taxes. You qualify if neither you nor your spouse (or common-law partner) have owned and lived in another home for the past five years. If you have a disability – or are purchasing the home for a relative with a disability – you may also qualify for the program, even if you are not a first-time buyer.
First Home Savings Account (FHSA)
The tax-free First Home Savings Account is a new program that allows you to save up to $40,000 towards their home purchase. Contributions to the FHSA are tax-deductible, and withdrawals for the purpose of buying a home are tax-free. This program combines the benefits of an RRSP and a Tax-Free Savings Account (TFSA).
Please get in touch if you’d like to chat about your plans to buy your first home. In the meantime, happy house hunting!
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