Buying a home for the first time is an exciting process. There are a number of different factors to consider when planning on purchasing a home. It is important to first get in touch with a real estate professional as well as a mortgage expert, whether that be with via a major financial institution or a mortgage broker.
A simple meeting with a mortgage expert will aid in making a determination on what you can comfortably afford. Once you have reviewed a cost analysis and taken into consideration all costs associated with purchasing, including land transfer tax, legal fees and all other closing costs, the next step would be consulting with a real estate professional to explore your options and begin viewing your first piece of property!
The benefits of being a first time home buyer in Ontario include:
- A land transfer tax rebate (up to $4000 for provincial land transfer tax and $4475 for the Toronto municipal) A little bit of weight off your shoulders when closing on your first home.
- The First–Time Home Buyer’s Tax Credit is a $5,000 non-refundable tax credit. Claiming this tax credit will provide a $750 income tax credit for the year in which you purchased your property.
- The First-Time Home Buying Incentive was introduced in September of 2019 offering an opportunity to own a shared equity mortgage with the government, up to 5% on a resale property and up to 10% on a new construction property, putting you in a partnership with the federal government who will benefit off the profits or share the loss of the value of property at the time of sale.
- Home Buyers Plan You qualify for a withdrawal of up to $35,000 as a First Time Home Buyer from your RRSP account so long as you return the funds within a 15 year span of withdrawal.