There are a couple of incentives that a first time home buyer can take advantage of to save some money when buying a home. I have outlined these programs for your convenience below along with links to more information.
The Home Buyers Plan
This program is Canada-wide and allows you to withdraw up to $25,000 from your RRSP to buy or build your first home. There are certain conditions, including a pay-back period of at most 15 years. The Home Buyers Plan website below will tell you everything you need to know about this program, including:
- Conditions for participating in the Home Buyer Plan
- Making a withdrawal
- Canceling your participation in the program
- Repaying your withdrawals
- Special repayment situations
For more information on these conditions and instructions on how to use this program, visit the Home Buyers Plan website.
The Land Transfer Tax Credit
This credit is available in Ontario and is a refund of the land transfer tax up to a maximum of $4,000 on your first home purchase. To be eligible for this credit you must be at least 18 years of age and neither you nor your spouse can have previously owned real estate anywhere in the world. The website listed below will tell you everything you need to know about this program including:
- General information about the refund
- Restrictions on who qualifies
- Explanation of how to apply
- Frequently asked questions
For further information on this credit, visit the Ministry of Finance’s website.
First Time Home Buyer Incentive
First time home buyers with an income of $120,000 or less may apply for a 5% or 10% shared equity mortgage with the Government of Canada. This incentive is to be paid back in 25 years or when the property is sold, whichever comes first. For more information on this program, including application documents, click here.
Take advantage of the $1,000’s of savings available by claiming the government’s incentives for first time home buyers!