questions-first-home-buyer

FIRST TIME HOME BUYER?

Tips For Getting Started

Buying your first home should be an enjoyable experience. However, most first time buyers can find the process to be overwhelming. Here are some things you should be aware of before you start on your journey:

Know your credit score

Learn key mortgage terminology

Determine how much you can afford

Get pre-qualified

Talk to a mortgage professional

RRSP Homebuyers Plan

RRSP Homebuyers Plan Effective January 27, 2009, as a first time home buyer, you are allowed to withdraw up to $35,000 as of March 20, 2019 from your RRSP without penalty. This amount can be doubled with your partner to a total of $70,000. Participants of the Homebuyers plan must begin repayment to their RRSP within two years of withdrawing the funds. For more information, talk to your mortgage professional or visit:

Canada Revenue Agency

Service Canada

Land Or Property Transfer Tax Refunds

If you purchase land or an interest in land, you may be entitled to a refund of a Provincial Land Transfer tax. In Ontario, qualified first time home buyers may be entitled to a refund of a provincial Land Transfer Tax up to a maximum of $2,000 or a home priced up to $227,500. There is also a first time buyers refund for homes purchased in the City of Toronto.

First Time Home Buyer Tax Credit

First time home buyers may eligible for a 15% income tax credit on a maximum of $5,000 of home purchase costs (e.g. legal fees, land transfer taxes) representing a tax relief of $750. The tax credit is applicable to first-time home buyers purchasing a home with a closing date after January 27, 2009. For more information visit:

Canada Revenue Agency