First Time Home Buyers in Collingwood ON real estate.

Help For First-Time Homeowners

Land Transfer Tax Refund

First-time homebuyers may be eligible for a refund of all or part of the land transfer tax. The refund applies to all homes, whether newly constructed or resale and maximum amount of the refund is $2,000.00
To claim a refund, 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.
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.
Application form online:http://www.rev.gov.on.ca/english/forms/ltt/pdf/0300.pdf

Home Buyers' Plan

The Home Buyers' Plan (HBP) is a program that allows you to withdraw funds from your Registered Retirement Savings Plan (RRSP) to buy or build a qualifying home for yourself or for a related person with a disability.

Currently, the maximum amount that an individual can withdraw in a calendar year from an RRSP to purchase or build a qualifying home without having to pay tax on the withdrawal is $20,000. For 2009 and subsequent years, for withdrawals made after January 27, 2009, the budget proposes to increase the maximum amount to $25,000.

For more information visit http://www.cra-arc.gc.ca/E/pub/tg/rc4135/README.html

Buyers get a tax credit
For 2009 and subsequent years, the budget also introduced a new non-refundable tax credit to helpfirst-time home buyers with some of their closing costs. This Home Buyer Tax Credit (HBTC) will provide up to $750 in tax relief on the purchase of a first home. The HBTC is calculated by multiplying the lowest personal income tax rate for the year (15% in 2009) by $5,000. For 2009, the credit will be $750.

To qualify for the HBTC, an individual must purchase a qualifying home and neither the homebuyer or the homebuyer’s spouse or common-law partner can have owned and lived in another home in the year of purchase or any of the four preceding years.

A qualifying home is a housing unit located in Canada including existing homes and those being constructed. Single-family homes, semi-detached homes, townhouses, mobile homes, condominium units, and apartments in duplexes, triplexes, fourplexes, or apartment buildings, all qualify. A share in a co-operative housing corporation that entitles the individual to possess and gives an equity interest in a housing unit also qualifies. However, a share that only provides a right to tenancy in the housing unit does not qualify.

First-time home buyers are also eligible for the Ontario Energy Savings Program and the Home Renovation Tax Credit