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 let you know about the various programs and incentives that are available.
You can claim $5,000 for the purchase of a qualifying home in the year if both of the following apply:
The Home Buyers Tax Credit is calculated by multiplying the lowest personal income tax rate for the year (15% in 2021) by $5,000. For 2021, this amount is $750
The Home Buyers’ Plan (HBP) is a program that allows you to withdraw from your registered retirement savings plans (RRSPs) to buy or build a qualifying home for yourself or for a related person with a disability. Budget 2019 increased the HBP withdrawal limit to $35,000. This applies to withdrawals made after March 19, 2019.
Land transfer tax applies to all conveyances of land in Ontario. Firsttime home buyers may be eligible for a refund of all or part of the tax payable.
Beginning January 1, 2017, the maximum amount of the refund is $4,000. The increased limit of $4,000 applies only to conveyances or dispositions that occur on or after January 1, 2017, regardless of the date the agreement of purchase and sale was signed.
Beginning January 1, 2017, no land transfer tax would be payable by qualifying firsttime purchasers on the first $368,000 of the value of the consideration for eligible homes. Firsttime purchasers of homes greater than $368,000 would receive a maximum refund of $4,000.
First-time home buyers in Toronto can also receive a municipal land transfer tax rebate of up to $4,475
With this incentive, Government of Canada provides:
This rebate offers money back to Canadians who buy a newly built home, substantially renovate an existing home, or rebuild a home that was destroyed due to fire. In all three cases, an individual will incur GST/HST on their purchase. The GST portion of a new home purchase or renovation can be rebated to all Canadians who qualify.
The GST/HST new housing rebate allows an individual to recover some of the goods and services tax (GST) or the federal part of the harmonized sales tax (HST) paid for a new or substantially renovated house that is for use as the individual’s, or their relations, primary place of residence, when all of the other conditions are met. Additionally, other provincial new housing rebates may be available for the provincial part of the HST whether the GST/HST new housing rebate for the federal part of the HST is available or not.
In certain circumstances, a transitional new housing rebate may be available in addition to any GST/HST new housing rebate and provincial new housing rebate for which you may be eligible, even if the house is not your primary place of residence.
The new housing rebate is not available to a corporation or a partnership.
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