First Time Home Buyer?
Are you contemplating becoming a First Time Home Buyer and wondering if there are any tax initiatives available for you. At CompareMyRates.ca we have 2 initiatives that may assist you.
Home Buyers’ Plan
If you are a First Time Homebuyer or are assisting a relative with a disability acquire a home, The Homebuyers’ Plan or HBP allows you to withdraw $25,000 in a calendar year from your Registered Retirement Savings, RRSPs. If purchasing the home with your spouse or common-law partner, or with other individuals, each is allowed can withdraw up to $25,000 if you qualify and you can withdraw a one time sum of $25,000 or make a series of withdrawals in that calendar year if you qualify.
You have to buy or build the qualifying home before October 1 of the year after the year of withdrawal. You can cancel your participation (or if you withdrew funds to help a related person with a disability acquire a home) if you did not buy or build a qualifying home or replacement property; or you became a non-resident before buying or building a qualifying home or a replacement property.
To find out more information on the HBP, visit the Canada Revenue Page for information on the Home Buyers’ Plan.
First Time Home Buyers Tax Credit
As a First Time Home Buyer, you may be entitled to the First Time Home Buyers’ Tax credit (HBTC). The $5,000 non-refundable HBTC amount applies to qualifying homes acquired after January 27, 2009, and provides up to $750 in federal tax relief for the home purchase costs such as legal fees, disbursements and land transfer taxes.
The HBTC was designed to provide relief to the first time home buyer. You may be eligible if you and your spouse or common law partner are considered a first-time home buyer. That means you or your spouse or common law partner did not own or live in another home in the year of the home purchase or in any of the four preceding calendar years. If the first-time home buyer requirement is not met, there may be special rules that apply for the purchase of homes that are more accessible or better suited to the personal needs and care of an individual who is eligible for the Disability Tax Credit.
To find out more information on HBTC, visit the Canada Revenue Page for information on the Home Buyers’ Tax Credit.
Your local mortgage broker can assist you find out the latest news on incentives or rebates you may have available to you and more. Speak to them about Government Programs for First Time Home Buyers and getting the best rates in Canada.
Please note: due to the Canada Day Holiday, our Green Monday Blog is being posted today.