First Time Home Buyer Tips
It is a dream of every person to own a home, with his/her own income. But when they attempt to buy a home for the first time, they often face a lot of troubles, mainly due to their ignorance in this field. It is essential for the first time buyers to know all about the credit they may be able to gain while paying taxes, for buying their own home.
First time Home buyer’s tax credit
It is a special rebate on the payable taxes offered in Canada, only to those people who are buying a home for the first time in their life. As per the latest taxation rate of this country, $750 rebate is allowed for the first-time buyers of residences. But they should be eligible for claiming this rebate, within one year of buying their homes.
They can buy an existing house or a totally new home, but it should be within Canada only. They can buy any type of home; single, semi-detached, townhouse, condo or mobile home; according to their requirements and budget. But the buyer should start living at that purchased home, within one year after buying it. The buyers may also buy a share in the local cooperative housing corporation, from where the possession of their newly purchased home can be available. Moreover, this should be the first home for the buyer, as well as for his/her spouse, at least within the time span of 4 years. The newly bought house should be registered in the name of the buyer or his/her spouse only. All the relevant documents of home purchase should be produced during claiming this rebate. Land transfer tax rebate for first-time buyers of homes
This specific rebate is functional only in the provinces of Ontario, Prince Edward Island and British Columbia. There are certain eligibility criteria for claiming this rebate, in each Canadian province. But the amount of rebate solely depends upon the exact location of the newly bought home, the purchase value of this new home and whether this is totally the first own home for the single or joint buyers.
RRSP home buyer’s plan
This specific Registered Retired Savings Plan is meant to help the first-time home buyers, by letting them borrow up to a amount of $25,000 from his/her RRSP account, without paying any tax for it. This money should be used for the down-payment, while buying his/her first home. If two first-time home buyers want to buy a house jointly, both of them can take money from their RRSP account, with the total available amount going up to $50,000.
GST/HST new housing rebate
If the buyer is purchasing a house, before the construction of the building is completed; he/she can expect to get a rebate on the sales tax. But the amount of this rebate depends on the cost price of the house and it can be availed only if this price is below $450,000.