Information from the actionplan.gc.ca website:
Ontario First Time Home Buyers Grants
As Realtors, we have an obligation to our Client Sellers and Buyers to lobby their best interests on the National scale.
Under the direction of Canadian Real Estate Association, Realtors form coast to coast continue to play a key role in persuading the Federal Government to move forward with special incentives that will allow more Canadians to own a home.
Ontario First Time Home Buyers Grants
Through Canada’s Economic Action Plan, the federal government introduced the First-Time Home Buyers’ tax credit (HBTC) to help with the purchase of a first home.
The HBTC assists first-time home buyers with the costs associated with the purchase of a home, such as legal fees, disbursements and land transfer taxes, which are a particular burden for first-time home buyers, who must also save for a down payment. 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. Ontario First Time Home Buyers Grants
An individual is considered a first-time home buyer if neither the individual nor the individual’s spouse or common-law partner owned and lived in another home in the year of the home purchase or in any of the four preceding calendar years. Special rules 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. In these situations, the HBTC can be claimed, even if the first-time home buyer requirement is not met.
A qualifying home is generally considered to be a housing unit located in Canada that the individual or individual’s spouse or common-law partner intends to occupy as their principal place of residence no later than one year after its acquisition.
Any unused portion of an individual’s HBTC may be claimed by the individual’s spouse or common-law partner. When two or more eligible individuals jointly purchase a home, the credit may be shared but the total credit amount claimed cannot exceed $5,000.
Claimants should ensure that documentation supporting the purchase transaction is available if requested by the Canada Revenue Agency. Claimants are also responsible for making sure that all applicable eligibility conditions are met. Ontario First Time Home Buyers Grants
First-time home buyers purchasing a home may claim the HBTC on their income tax returns, starting with the 2009 taxation year.
Legislation to implement the HBTC received Royal Assent on December 15, 2009.
Canadians purchasing their first home after January 27, 2009 can claim the HBTC on their income tax return for the year in which they make their purchase.
Since introduction of the program in 1992, an estimated 2 million people have borrowed more than $15 billion of their own savings from RRSP to purchase a home.
Under Home Buyers' Home Plan, first-time home buyers are allowed to withdraw funds from their RRSP, tax-free, to put towards the down payment on a home. The money withdrawn under the HBP must be repaid over a 15-year period, starting the second year following the year of the withdrawal.
This year's Federal Budget allows for an increase to the withdrawal limit for first-time home buyers using the Home Buyer's Plan from $20,000 to $25,000/per individual. This is a great news for the First time buyers. Find out more here.
This program provides home and property owners with grants of up to $5,000 to offset the cost of making energy-efficiency improvements.
ecoENERGY Retrofit grants apply to a host of measures that reduce energy consumption and provide for a cleaner environment, from increasing insulation to upgrading a furnace. Find out more here.
First-time home buyers who purchase a newly constructed home will receive a rebate of the Provincial Land Transfer Tax (LTT). All other buyers will continue to pay the full applicable tax. The maximum Provincial LTT rebate is $2,000. Find out more here.
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