1. Home Buyers’ Plan (HBP):
The HBP is a Canadian government program that allows for first-time home buyers to withdraw a maximum of $35,000 from a Registered Retirement Savings Plan (RRSP) to buy or build your first home. The amount withdrawn must be repaid in 15 years. Here is some examples of some of the ways First-Time Home Buyers’ Plan could help you.
2. Ontario Land Transfer Tax Refund:
Whenever a property is bought and sold, the buyer must pay a tax on the transfer of land ownership, known as Land Transfer Tax. There is a Provincial rebate to a maximum of $4,000 for up to $368,000 purchase price. The City of Toronto offers an additional rebate to a maximum of $4,475. Use the Land Transfer Tax Calculator to see the exact amount you need to prepare.
3. First-Time Home Buyers’ Tax Benefit (FTHB):
In an effort to alleviate the closing costs of buying a home, such as lawyer fees and any applicable taxes, the government of Canada offers a $5,000 non-refundable income tax credit. Eligible first-time buyers can receive up to $750 in federal tax relief.