What Benefits Do First-time Homebuyers Get in Ontario?
Posted On January 19, 2022
Being a first-time homebuyer in Ontario is not an easy task. Buyers have to keep a check on various things such as the closing price of the deal, getting the lowest possible mortgage rates as well as qualifying for a mortgage loan. Seeking the help of professionals at this time is a good idea as they can streamline the process when you seek a home for sale.
If you are a first time homebuyer, the Ontario Government has some policies that can benefit you. Go through the whole process without falling prey to any bad decisions and grab the best deal for yourself. On the other hand, if you are looking for a home to sell or a house to sell, you should check out www.savemax.com. Without further ado, let us dive right into the article and know more about the benefits for first-time homebuyers.
Land Transfer Tax Refund
First-time homebuyers can get rebates on land transfer tax from the Ontario Government. You can receive a land transfer tax refund of up to $4,000. You get the maximum refund amount for purchasing a house of $368,000 or less than that. It can be a townhouse, or you may be looking at detached houses or semi-detached housesbut the process remains the same.
Not only this, buyers can obtain a municipal transfer tax rebate of up to $4,475. In addition to this, if you are buying a house for sale in Toronto for the first time, you can get both the municipal tax rebate and provisional tax rebate. Land transfer tax is a component of the closing deal when you are buying a property.
With the homebuyer’s plan, buyers can withdraw funds from their Registered Retirement Savings Plans. Under this plan, you can get funds up to $25,000 from your RRSP. If you have a partner or spouse then you can avail of additional benefits. You and your partner can both withdraw $35,000 each from your RRSPs which adds up to a total of $70,000. Moreover, this loan is interest-free and you can 15 years to pay it back. Those who have a house to sell can check out www.savemax.com to explore some great choices.
Homebuyers’ Tax Credit
If you are a first-time homebuyer and your house qualifies for the program, you can claim the non-refundable income tax credit. Your home qualifies for the program if the house is in your name or your spouse’s name. The qualifying home can be an existing property, townhouse, condo unit or any other type of property.
To qualify for this program, you must not have bought a house within the last four years. Moreover, the tax is entirely dependent on the federal income tax rates. Do note that people with disabilities can apply for this program even if they are not first-time homebuyers.
First-time Home Buyer Incentive
This program assists in lowering mortgage payments and reducing the total amount that a buyer needs to borrow. Additionally, the Government gives either 5% or 10% to the eligible homebuyers so they can offer a better down payment on the price.
Getting a pre-approval for a mortgage for at least 80% of the total property’s value is mandatory. Moreover, the whole point of this program is to make home-buying affordable. Since the loan is tax-free, the buyers must repay it either when the house is sold or within 25 years, whichever is earlier.
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GST/HST Housing Rebate
First-time home buyers pay Goods Service Tax (GST) or Harmonized Sales Tax (HST) on the cost of the new house. If you qualify for this program, you can get a rebate of part of the GST or HST. Be it renovation, an under-construction building, expansion of an existing house, or conversion of a non-residential property into a residential one, several houses can qualify for this policy.
Rebates may be available for both the federal and provisional parts of the HST. Check if you are eligible for this program and if yes, ensure you have the necessary documents. If you have a home to sell, then do check out this website for some pretty great options.
You can claim interest-free loans to make the house energy-efficient. Although this program is not just for first-time homebuyers, they can certainly benefit from it. You can claim grants up to $5,000 to get energy-efficient retrofits to the house. Get rebates simply by ensuring that your house is energy efficient. Make sure that you go through all the relevant programs as both lenders and the Government offer them to buyers. Before making any decision, talk to experts and professionals to understand the entire process. You should seek out the help of mortgage experts so you can make informed decisions.
Before jumping to any quick decisions on a home for sale, take your time to do extensive research. Learn about the various terms and policies so you are fully aware of any relevant programs you can avail of. Walk through all the steps of buying a house repeatedly to make sure you have it under control. Plan and make sure you claim the benefits of being a first-time homebuyer in Ontario.