With housing markets across Canada seeing a rise like never before, home buyers may feel overwhelmed to get on to the property ladder for the first time. Thankfully, the government of Canada has programs to assist with buying your first home. If you are a first-time homebuyer, read on for some programs that you should familiarize yourself with before choosing the one that meets your needs.
RRSP Home Buyer’s Plan
The RRSP Home Buyer’s Plan (HBP) is a federally instituted government program that allows you to withdraw up to $35,000 from your RRSP to buy or build a qualifying home.
Read here for more information
First Time Home Buyer’s Refund
The First Time Home Buyer’s Refund allows eligible purchasers to receive a refund of all or part of the land transfer tax payable. The province offers a maximum refund of $4,000.00. The amount of refund you could receive varies depending on the cost of your home. No land transfer tax would be payable by qualifying purchasers on the first $368,000 of the value of consideration for eligible homes.
If the refund is claimed at the time of registration, it may offset the land transfer tax ordinarily payable. If not claimed at registration, the refund may be claimed from the Ministry of Finance within 18 months of Registration.
Read here for more information
First Time Home Buyer’s Tax Credit
The Home Buyer’s Tax Credit allows eligible purchasers to claim $5,000 for the purchase of qualifying home. When more than one person is entitled to that amount (for example when two people jointly buy a home), the total of all amounts claimed cannot exceed $5,000.
Read here for more information
