Submitted by: Diane Salman
Purchasing a home is the largest cheque most people will ever sign, so making sure you have all the information at hand before making your purchase is important. In addition to your down-payment there will be various closing costs that you will need to think about as well. These costs can add up to quite a substantial amount of money. But for many home buyers, especially first-time home buyers, these extra costs could be offset, at least in part, by available rebate programs. Here are 4 home buyer rebate programs you need to know about.
Land Transfer Tax Refund for First-Time Home Buyers
Every buyer in Ontario must pay the government a land transfer tax which is based on a percentage of what the home sold for. First-time home buyers however can apply for a rebate for and receive a rebate for all of a portion of the tax paid. Other provinces may have similar programs available and in Ontario the maximum amount that would be refunded is $2,000. Some cities, such as Toronto, have also implemented their own land transfer tax but this too can be refunded to eligible buyers. That s nothing to sneeze at.
GST Rebate For New Home Purchases
If you buy a resale home you generally do not have to pay GST on the purchase price. Not so however if you buy a new home construction. New homes are subject to GST on the purchase price but there is a rebate program for this as well. In general eligible new home buyers can apply for a refund of all or a part of the GST. Keep in mind though that some builders include the GST in the price of the new home and any GST refund would go to them since they are the ones who absorbed the GST in the first place.
Affordable Housing Program
Government is continually trying to make home ownership affordable and available to everyone and with any government program the rules can be complex. In a nutshell the affordable housing program allows those people who qualify to apply for a government grant for the down-payment of their home. Municipalities and provinces have different rules as to who qualifies so check with your real estate professional for more details.
Home Buyers Plan
For most people looking to buy their first home the monthly mortgage payments are not the issue. Mortgage payments are usually close to what they are already paying in rent. The biggest obstacle to buying a home is coming up with the down-payment. If you have money in your RRSP however you can withdraw up to $20,000 tax free for the purpose of using it as your down-payment. This money needs to be paid back to your RRSP within fifteen years and payments need to be made to it every year.
It is important to do your research and speak with your real estate professional to find out more on theses programs and which ones you will be eligible for. Even qualifying for only one program can save you a substantial amount of money.
About the Author: Diane Salman is a
GTA real estate
professional for Re/Max Realty Specialists Inc., Brokerage. Keep up-to-date with market information in your area and feel free to visit the site search for
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