Dream Key Mortgage Agents work closely with first time homebuyers to ensure they have an in-depth understanding of their mortgage’s terms and conditions in addition to the entire purchasing process months before the transaction and long after. Our trusted experts will guide you through each step, educating you on current market conditions and making recommendations where necessary to ensure you are always in the right hands while understanding the details of Toronto’s fast-paced real estate market. For many, a mortgage loan is often the largest loan amount they will ever receive so being prepared and connected with right people is the key to success.
Tax Rebates and Benefits
In Ontario, first time homebuyers have a variety tax rebates and benefits available to them which can result in significant savings. A few of these benefits are listed below:
Land Transfer Tax Refund
First time homebuyers may be eligible for all or part of the Ontario Government’s Land Transfer Tax Rebate. Your rebate will be based on the amount paid for the land or on the fair market value of the land and has a limit of $4,000 – meaning you are not paying land transfer tax on the first $368,000 of the purchase price. To claim a refund, you must meet certain requirements, so it is important to discuss the amount you qualify for with your Real Estate Lawyer.
As a first time homebuyer, you can take advantage of the HomeBuyer’s Plan which allows you to withdraw up to $25,000 from your RRSP to go toward your down payment. This is an interest-free loan and must be paid back over 15 years. If you are making a purchase with your spouse or partner who is also a first time homebuyer, you can withdraw up to $50,000 to go toward your down payment.
First Time HomeBuyer’s Tax Credit
If you have not owned a home within the last four years, you may be eligible for a tax credit which is calculated based on federal income tax rates. For a full understanding of what First Time HomeBuyer benefits are available to you, consult your Real Estate Lawyer, or let us get you in touch with the right Law Firm today.