Buyer
Information
First Time Home Buyer Incentives
IIn
order to qualify for many of the FIRST TIME HOME BUYER INCENTIVES, the following
conditions will apply. You must be at least 18 years of age; must occupy the home
as your principal residence within 9 months of after the date of transfer; and
cannot have owned a home, or an interest in a home, anywhere in the world. Land
Transfer Tax Refund
First-Time Homebuyers may be eligible for a
refund of all or part of the tax. This applies for agreements of purchase and
sale entered into before December 14, 2007, the refund only applies on the purchase
of a newly constructed home. For agreements of purchase and sale entered into
after December 13, 2007, the refund applies to all homes, whether newly constructed
or resale.
The maximum amount of the refund is $2,000. If the refund is
claimed at time of registration, it may offset the land transfer tax ordinarily
payable. If not claimed at registration, the refund may be claimed directly from
the Ministry of Revenue. No interest is paid on this refund. In addition: your
spouse cannot have owned a home, or an interest in a home, anywhere in the world
while being your spouse; and in the case of a newly constructed home, you must
be entitled to a Tarion
New Home Warranty.
Examples:
Cost
of
Home | Tax
Payable | Tax
Refund | Net Tax
Payable
| | $100,000 | $725 | $725 | $0 | | $200,000 | $1,725 | $1,725 | $0 | | $300,000 | $2,975 | $2,000 | $975 |
***Speak
to your lawyer for further details**** RRSP Home
Buyers Plan (HBP)
The HBP allows the participants to withdrawal
up to $25,000 per person from an RRSP to build or buy a qualifying home. Money
must be held for at least 90 days before the down payment is eligible for the
HBP. You must re-pay 1/15 of the total withdrawal per year back into the RRSP
to avoid any taxation on the income. Please download FIRST TIME HOME BUYER REPORT
for more details. (PDF FILE) Tax Credit - 2009
First
time buyers can file for a $750.00 tax rebate or deduction to cover any legal
costs incurred from Jan 27th.2009 to Jan. 27th.2010. Claim must be filed in 2010
for the 2009 tax year. Please speak to an accountant or lawyer for further details.
GST New Housing Rebate
You may
be able to claim a rebate for a portion of the GST you pay on the purchase price
or cost of building your home if you buy a new or substantially renovated home,
mobile home, floating or modular home from a builder or vendor. Or, you buy a
share in the capital stock of a co-operative housing corporation, or construct
or substantially renovate your home (or hire someone to do so). Also applicable
if your home is destroyed by fire and is rebuilt. Contact the Canada Customs and
Revenue Agency in your community for the Completion Guide and Application Form.
In most cases, your solicitor will take care of this for you.
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