First-time Home Buyers Can Now Qualify for up to $4,000 in Rebates!
As of January 1, 2017, first-time home buyers are eligible for up to $4,000 in rebates. In other words, this is the equivalent of the land transfer tax on a property up to $368,000.
What this means for first-time home buyers:
First of all, this rebate has no effect on your ability to purchase a home. It will provide an added boost and some extra change in your pocket. Therefore, that's money to put towards other services and fees in your transaction, (and that's a good thing)! This rebate could potentially reduce your overall closing costs.
With this doubled refund, more than half of first-time home buyers in Ontario will now pay no Land Transfer Tax (LTT) at all.
You must be over the age of 18 to qualify for this rebate.
Your lawyer will apply for the fee when they finalize your purchase. If your lawyer does not apply for it, you have 18 months to apply after the registration date of the sale.
But Wait, There’s More!
This isn’t the only credit available to first-time home buyers. Here are some other rebates that might be applicable to you:
Energy Efficient Housing initiative: Both Genworth Canada and the Canada Mortgage and Housing Corporation (CMHC) offer energy efficient housing initiatives. These initiatives include up to a 25% or a $1,620 rebate on the CMHC insurance premiums paid when purchasing a home. Here's the best part, this one isn’t just for new homeowners! Existing homeowners can apply to receive this rebate as well.
New Housing Rebate: You may be eligible for an harmonized sales tax (HST) rebate if your provincial and federal taxes are combined. This rebate is designed to help with the federal portion of the HST that home buyers pay.
According to Ray Ferris, President of the Ontario Real Estate Association “this tax break will reduce a first-time buyer’s closing costs and help them save more for their down payment.” Therefore, this increased LTT rebate will help more first-time home buyers achieve their dreams of home ownership.
Call the Best from Ottawa-West!
If you’re buying your first home and have more questions, give The Susan and Moe Team a call at 613-505-0232! Sign up for our listing email and never miss out on finding your dream property!