Help For First Time Buyers
If you are a first time buyer, there are some government programs that can help you buy your first home.
RRSP Home Buyer’s Plan
This government plan allows qualified buyers to withdraw a maximum of $25,000 tax free from their RRSPs to buy or build a house. If your spouse is also eligible, you can each withdraw up to $25,000 for a total of $50,000. No tax is paid as long as the withdrawals are repaid according to the government’s repayment schedule. To be participate in the plan, you or your spouse can not have owned a home which you occupied as your principal residence in the last five years. The repayment period must be no longer than 15 years. Each year you must pay 1/15 of the total amount you withdrew.
Home Buyer Tax Credit
This credit is claimed on your income tax form (line 369) in the taxation year you bought the home. To qualify, neither you nor your spouse can have owned and lived in another home in the past five years. In 2012, the tax credit was $750.
Land Transfer Tax Rebate
First-time buyers can receive a refund of land transfer tax up to a maximum of $2,000. To qualify, you and your spouse must be at least 18 years of age and have never owned a home anywhere in the world.
For more information, contact one of our eHomes professionals.