Are you renting right now and not happy with your landlords? Do you dream of buying a home but not sure if it’s something you could manage. There might be more help available then you originally thought. If you are thinking about purchasing a home or already own your home, make sure to take advantage of these awesome benefits. Before we get into these awesome tips, make sure to follow us on Instagram @MissarMarshall and on Facebook @Missar-Marshall Real Estate Group. Alright, now let’s get into the tips:
- First Time Home Buyers Tax Credit (HBTC)
Who doesn’t love a good tax break! There are tax benefits specific to each province and a National Program called First Time Home Buyers Tax Credit (HBTC). The purpose for this tax break is to give you a portion of your purchase price back the year after you buy. This tax credit gives you a free $750 when you file your taxes the year after your purchase date. It takes 20 seconds to claim and is a nice little kick-back courtesy of the CRA.
- Property Transfer Tax Exemption
The First Time Home Buyers Program. This program eliminates the property transfer tax for first time buyers for those purchasing below $500,000 (with a partial exemption up to $525,000. This is a huge saving as PTT runs at $8,000 on a $500,000 purchase! For more info on whether you’re eligible feel free to send us a message and we can help!
Not a first time buyer? No worries! If you are purchasing a newly built home, there’s the Newly Built Home Exemption up to $750,000 (with a partial exemption up to $800,000) which helps lower or eliminate the property transfer taxes that you’re required to pay. This could save you thousands!
- Home Buyer’s Plan (HBP) – RRSP Tax Break
A great Federal Program is the Home Buyer’s Plan (HBP), which allows you to use up to $35,000 from your RRSP’s to put towards your first home purchase. When you withdraw funds from your RRSP’s you’re taxed on the amount. Under the HBP, you can withdraw up to $35,000 without being penalized. What’s even better is that if there are two purchasers going on title then you can both take advantage of this scheme.
- GST/HST New Housing Rebate
By buying a home, you may qualify for a rebate on part of the GST or HST you paid on the purchase of your new home. Your lawyer will work out the rebate on completion and you can check the Government of Canada website for more info!
These are the main sources of help for first time home owners out there but there could be more! The other really important thing to note is that these are stack-able! So if you’re purchasing a new home under $750,000 and you’re a first time home buyer, you could be eligible for a Property Transfer Tax exemption, GST Rebate, $750 Tax Credit and income tax savings on any money withdrawn from your RRSPs through the Home Buyer’s Plan. This could potentially save you thousands of dollars!
If this sparks any questions then please get in touch! We love helping people get into the market and have all the tools on hand to help save you money!