There are several incentives and schemes for first time home buyers
- RRSP Home buyers plan
- Ontario Land transfer tax rebate of up to $4,000
- HST rebate for new home buyers
- First time buyer tax credit
What is RRSP Home Buyers Plan (HBP)?
Home Buyers Plan is a program that allows first time home buyer to borrow up to $35,000 from their “Self-directed Registered Retirement Savings Plan (SDRSP)”. If you’re purchasing with someone who is also a first time homebuyer, you can both access $35,000 from your RRSP for a combined total of $70,000. You must be a Canadian resident who has not used this plan before. The loan is not taxable as long as the funds are repaid into the RRSP (registered retirement savings plan) over a 15 year period. The money cannot be withdrawn until 90 days after the RRSP contribution. After 90 days one can use the Home Buyers’ plan to withdraw $35,000 without penalty. This way you will receive a tax rebate.
Is there any HST home buying rebate?
Resale homes are exempted from HST in Ontario. HST is payable on new builder homes and condos.
Do first time buyers pay land transfer tax?
If you are a first time home buyer, you qualify for rebate of up to $4,000. Certain conditions and restrictions apply for which you need to read up on the Land Transfer Tax.
What is first time buyer tax credit?
To assist first-time home buyers with the costs associated with the purchase of a home, Budget 2009 introduced a First-Time Home Buyers Tax Credit a $5,000 non-refundable income tax credit amount on a qualifying home acquired after January 27, 2009. For an eligible individual, the credit will provide up to $750 in federal tax relief starting in 2009.