5 Benefits First Time Home Buyers Should Take Advantage Of
Being a first-time home buyer can be daunting. The Ontario government wants to help out first-time home buyers as well, by offering benefits and tax rebates. Here are some benefits first-time home buyers in Ontario should definitely take advantage of!
1 – LAND TRANSFER TAXE RETURN
The Ontario government offers first-time home buyers rebates on land transfer tax. Land transfer tax is part of the closing cost of purchasing a property and is based on the amount paid for the land or on the fair market value of the land. First-time home buyers are eligible to receive a land transfer tax refund of $4,000, which means they don’t pay land transfer tax on the first $368,000 of their home’s price.
2 – HOME BUYER’S PLAN
As a first-time home buyer, you are able to use your RRSP towards a down payment with the Home Buyer’s Plan. Under this plan, you are able to withdraw up to $25,000 from your RRSP to go towards a down payment on your first home. An added plus is that if you and your partner each withdraw from your RRSPs, you can withdraw up to $50,000. This is an interest-free loan that must be paid back over 15 years.
3 – FIRST TIME HOME BUYER’S TAX CREDIT
If you have not owned a home within the last four years, you may be eligible for a tax credit. This credit is calculated based on federal income tax rates.
4 – ENERGY EFFICIENT HOUSING
This benefit isn’t exclusive to first-time buyers, but they can certainly benefit from it! There are a variety of rebates you can receive by making sure your home is energy efficient.
5 – WORKING WITH A REAL ESTATE AGENT
It is typical for the seller to pay for the real estate commission. So you get a Real Estate agent who can advise, guide you and negotiate for you at no cost. As a first time buyer we can help you navigate through the tedious process of buying your first home, make sure you have maximize your value for your hard earned dollars and protect you by drafting the right agreement Let us know which area and which kind of housing you are looking for so we can help you to plan accordingly.