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What Benefits Do First-time Homebuyers Get in Ontario?

July 15, 2022

Being a first-time homebuyer in Ontario is not an easy task. Buyers have to keep a check on various things, such as the closing price of the deal, getting the lowest possible mortgage rates, and qualifying for a mortgage loan. Seeking the help of professionals at this time is a good idea as they can streamline the process when you seek a home for sale.

If you are a first-time homebuyer, the Ontario Government has some policies to benefit you. Go through the process without falling prey to any bad decisions and grab your best deal. On the other hand, if you are looking for a home to sell or a house to sell, you should check out www.therealtybulls.com. Without further ado, let us dive into the article and learn more about first-time homebuyers’ benefits.

Land Transfer Tax Refund

First-time homebuyers can get rebates on land transfer tax from the Ontario Government. You can receive a land transfer tax refund of up to $4,000. You get the maximum refund amount for purchasing a house of $368,000 or less than that. It can be a townhouse, or you may look at detached or semi-detached housesbut the process remains the same.

Also, buyers can obtain a municipal transfer tax rebate of up to $4,475. In addition, if you are buying a house for sale in Toronto for the first time, you can get both municipal and provisional tax rebates. Land transfer tax is a component of the closing deal when buying a property.

Homebuyer’s Plan

Buyers can withdraw funds from their Registered Retirement Savings Plans with the homebuyer’s plan. Under this plan, you can get up to $25,000 from your RRSP if you have a partner or spouse and can avail of additional benefits. You and your partner can withdraw $35,000 each from your RRSPs, which adds up to $70,000. Moreover, this loan is interest-free, and you can 15 years to pay it back. Those with a house to sell can visit www.therealtybulls.com to explore some great choices.

Homebuyers’ Tax Credit

If you are a first-time homebuyer and your house qualifies for the program, you can claim the non-refundable income tax credit. Your home qualifies for the program if the house is in your name or your spouse’s name. The qualifying home can be an existing property, townhouse, condo unit or any other property type.

You must not have bought a house within the last four years to qualify for this program. Moreover, the tax is entirely dependent on federal income tax rates. Do note that people with disabilities can apply for this program even if they are not first-time homebuyers.

First-time Home Buyer Incentive

This program assists in lowering mortgage payments and reducing the total amount that a buyer needs to borrow. Additionally, the Government gives either 5% or 10% to eligible homebuyers so they can offer a better down payment on the price.

Getting a pre-approval for a mortgage for at least 80% of the total property’s value is mandatory. Moreover, the whole point of this program is to make home-buying affordable. Since the loan is tax-free, the buyers must repay it when the house is sold or within 25 years, whichever is earlier.

GST/HST Housing Rebate

First-time home buyers pay Goods Service Tax (GST) or Harmonized Sales Tax (HST) on the cost of the new house. If you qualify for this program, you can get a part of the GST or HST rebate. Several places can be eligible for this policy: renovation, an under-construction building, expansion of an existing home, or conversion of a non-residential property into a residential one.

Rebates may be available for both the federal and provisional parts of the HST. Check if you are eligible for this program, and if yes, ensure you have the necessary documents. If you have a home to sell, check out this website for some great options.

Energy-efficient Housing

You can claim interest-free loans to make the house energy-efficient. Although this program is not just for first-time homebuyers, they can benefit from it. You can claim grants of up to $5,000 to get energy-efficient home retrofits. Get rebates simply by ensuring that your home is energy efficient. Ensure you go through all the relevant programs, as lenders and the Government offer them to buyers. Before deciding, talk to experts and professionals to understand the entire process. You should seek the help of mortgage experts to make informed decisions.

Final Words

Before jumping to any quick decisions on a home for sale, take your time to do extensive research. Learn about the various terms and policies, so you are fully aware of any relevant programs you can avail of. Walk through all the steps of buying a house repeatedly to make sure you have it under control. Plan and make sure you claim the benefits of being a first-time homebuyer in Ontario.