Sutton Group-Admiral Realty Inc., Brokerage
Buying a house for the first time is a big and important decision in your life. As someone who represents you and looks out for your best interest, I would like to introduce you to the benefits of being a first time home buyer. The first benefit is that you save thousand of dollars right out of the gate. Just plan properly to take advantage of every opportunity listed here. Rember you are considered to be a first time buyer if neither you and your spouse or common-law partner has owned and lived in another home in the year of the purchase or in any of the four previous years. Look at these four programs:
Let's start with the $35,000 RRSP Withdraw
The Home Buyer’s Plan (HBP) is a government program that allows home buyers to withdraw up to $35,000 from their Registered Retirement Saving’s Plan (RRSP) to put towards buying or building a new home. Couples, including common-law, can withdraw up to $70,000. You will not pay income tax on these amounts as long as these funds will be repaid into an RRSP in the future. At an average tax rate of 35% you could be saving $25,000 in taxes by taking advantage of this plan.
The New and Soon To Be Improved First-Time Home Buyer Incentive
The First-Time Home Buyer Incentive makes it easier for you to buy a home and lower your monthly mortgage payments. This program is a shared equity mortgage. This means that the government shares in the upside and downside of the property value. It allows you to borrow 5 or 10% of the purchase price of a home. You pay back the same percentage of the value of your home when you sell it or within a 25-year window. Make sure to stay in touch with me to get the most up to date infomration about this. Mr. Trueadue will be making changes to this program to increase the purchase price limit for those purchasing a home in Ontario. Currently there's a cap on the purchase price of about $525,000 but the propsed changes will push this amount into the $800,000s. That could be upwards of $40,000 in upfront cost savings, plus annual savings on the lowered mortgage amount.
Big Savings on the Land Transfer Tax
First-time homebuyers in Ontario can saving $4000, and those buying in Toronto specifcally can save an additional $4,475, for a total of $8,475 on qualifying purchasing. Click here to find out the qualifcation criteria, and use the calculator below to find out how much you can save.
And Lastly The $750 First-Time Home Buyers’ Tax Credit
First-Time Home Buyer’s Credit (FTHBC) is a government program geared towards buyers like you. The objective is to reduce costs associated with purchasing a home. The Home Buyers’ Amount offers a $5,000 non-refundable income tax credit amount on a qualifying home acquired during the year. For an eligible individual, the credit will provide up to $750 in federal tax relief. It can be claimed for the taxation year that you acquired the house.
Start Saving Thousand Here