Land Transfer Tax Rebate for First-Time Home Buyers
Provincial Land Transfer Tax Rebate:
- Provincial Land Transfer Tax is payable anywhere in Ontario (including Toronto)
- Maximum first-time buyer rebate
is $4,000.
Toronto Land Transfer Tax Rebate:
- Toronto Land Transfer Tax is payable only for
properties in the City of Toronto.
- Maximum first-time buyer
rebate is $4,475.
Requirements:
- You cannot have previously owned a
home, or had any ownership interest in a home, anywhere in the world, at
any time.
- If you have a spouse, the spouse cannot
have owned a home, or had any ownership interest in a home, anywhere in the
world, while he or she was your spouse. If this is the case, no
refund is available to either spouse.
- You must be at least 18 years of age.
- You must occupy the home as principal residence no later than 9 months after the date of closing.
RRSP Home Buyers' Plan
Up to $25,000 per person could be withdrawn
tax-free from RRSPs to buy or build a principal residence. Couples, including
common-law, will be able to withdraw up to $50,000. Note: Budget 2019 proposes to increase the Home Buyers' Plan withdrawal limit to $35,000 per person. This would be available for withdrawals made after March 19, 2019.
Requirements:
- You have to intend to occupy the qualifying home as your principal place of residence no later than one year after closing.
- You have to meet the first-time
buyer’s condition. You are not
considered a first-time home buyer if you or your spouse owned a home that you occupied
as your principal place of residence in the past 5 years.
- Your RRSP contributions must remain in the RRSP for at least 90 days before you can withdraw.
- Neither you nor your spouse can own the qualifying home more than 30 days before the withdrawal is made.
- You have to be a resident of Canada.
- You have to receive all withdrawals in the same calendar year.
Repayments:
- A 15-year repayment period will begin in the
second calendar year following the calendar year in which the withdrawal is
made. In addition, a qualifying home must generally be acquired before October
1 of the calendar year following the year of withdrawal. For example, those
making withdrawals under the plan in 2009 will have until October 1, 2010 to
acquire a qualifying home and their first annual
repayment will be due by the end of 2011 or the first two months of 2012.
First-Time Home Buyers’ Tax Credit
The First-Time Home Buyers’ Credit (FTHBC) provides a 15 percent credit
on a maximum of $5,000 of home purchase costs (e.g. legal fees, land
transfer taxes, etc.), meaning maximum tax relief of $750.
Requirements:
- You will be considered a first-time home buyer if neither you nor your spouse or common-law partner owned and lived in another home in the calendar year of the home purchase or in any of the four preceding calendar years.
|
|