Are you a first time home buyer?
If you qualify as a first time home buyer, you may be eligible for a Land Transfer Tax Rebate. This could mean substantial savings. In order to qualify, you must meet the following criteria:
Can we receive a land transfer tax rebate if only one of the purchasers is a first time home buyer?
The refund amount is reduced when one or more of the purchasers are not first-time home buyers. You will receive a proportionate rebate based on the number of people who are first time purchasers. For example, where a common law couple, one person being a first time home buyer and one having previously owned a home, purchase a home with equal 50/50 interests, a 50% claim of the land transfer tax credit may be claimed. The total claim cannot exceed 50% of the maximum allowable refund. 50% of $2000.00 = $1,000.00.
How much is the land transfer tax rebate?
If you qualify as a first time home buyer you may be entitled to a maximum rebate of $2,000.00 off the Ontario Land Transfer Tax. If you are purchasing a property in Toronto you will also receive up to $3,750.00 off your Toronto Land Transfer Tax.
First time home buyer tax credit
In addition to the land transfer tax rebate, first time home buyers may be eligible for at 15% income tax credit for closing costs. You may be entitled to the following:
RRSP Home buyer's program
The Home Buyer's Plan may allow you to withdraw up to $25,000 from your registered retirement savings plan (RRSP) to buy or build a qualifying home.
Withdrawals that meet all applicable HBP conditions do not have to be included in your income, and your RRSP issuer will not withhold tax on these amounts. You must occupy the home no later than one year after buying or building the home. You are required to repay the funds to your RRSP over a 15 year repayment period.
If you purchase the home together with other individuals, each of you can withdraw up to $25,000 tax free. If you owned your home more than 30 days before the date of your withdrawal, you will not qualify for the program.
The money must be in your RRSP for at least 90 days before a withdrawal is made to qualify.