Home » BUYING » TAX CREDITS & REBATES FOR FIRST-TIME HOME BUYERS IN TORONTO
Is there a tax credit for first-time home buyers?
Yes!! The First-Time Home Buyer Rebate is part of Canada’s Economic Action Plan to alleviate some of the harrowing costs involved in buying your first home. The First-Time Home Buyer Rebate and First-Time Home Buyer Tax Credit are designed to help new homeowners cover some of their expenses.
FIRST-TIME HOME BUYER TAX CREDIT 2020
The First-Time Home Buyer Tax Credit amount is valued at $750 for all first-time home buyers.
To take advantage of this first-time home buyer rebate, it must be claimed on your personal tax return for the year affiliated with your home purchase. If you purchased a condo where the occupancy date is one year but you take ownership in a subsequent year, you will claim the rebate during the year your condo is registered with the city and the title is transferred to you.
To be eligible for this First-Time Home Buyer Tax Credit rebate, the purchaser: • Must be buying a home within Canada • Must intend to occupy the home within one year of purchase • Cannot have lived in a home owned by you or your spouse within the previous 4 years
FIRST-TIME HOME BUYER LAND TRANSFER TAX REBATE 2020
Eligible first-time home buyers can receive a maximum land transfer tax rebate amount of $4,475 on their Municipal Land Transfer Tax and up to $4,000 on their Provincial Land Transfer Tax.
Under this first-time home buyer land transfer tax rebate, first-time home buyers are eligible for a full or partial rebate on their Land Transfer Tax. Buyers in Toronto pay a municipal Land Transfer Tax as well as the standard provincial Land Transfer Tax.
Purchasers must apply within 18 months of purchase to obtain their First-Time Home Buyer Land Transfer Tax rebate. You can use this Form to apply for the Ontario Land Transfer Tax Refund.
To be eligible for the First-Time Home Buyer Land Transfer Tax rebate, the purchaser: • Must be 18 years of age • Must be a permanent resident of Canada • Must intend to occupy the home within 9 months of purchase • Cannot have previously owned a home locally or elsewhere in the world. If you are married and your spouse has previously owned a home, you are no longer eligible for this first-time home buyer land transfer tax rebate.
The first is an additional $10,000 allowance for the Home Buyers’ Plan. Eligible home buyers can now withdraw up to $35,000 from their RRSPs as an interest-free loan (up from $25,000) to assist with the down payment on a property. The loan needs to start being repaid two years after the year of withdrawal, with a total of 15 years to repay the amount that was withdrawn.
CMHC Shared Equity Mortgage
Still in the planning stages and expected to officially roll out in the fall 2019 is the CMHC Shared Equity Mortgage loan. This incentive would allow home buyers earning $120,000 or less per year who are applying for an uninsured mortgage (anything less than a 20% down payment) to be eligible for an interest-free loan from the Canadian Mortgage Housing Corporation (CMHC) of up to 10% of the purchase price.