Buying as a First Time Home Buyer

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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 FirstTime 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.

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