3 Programs for Ontario First Time Home Buyers
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By :
Jamie Hanson
Submitted
2010-02-11 00:17:51 |
The time has never been better to be a first time home buyer in Ontario. With evidence lesser interest rates, steady home rates and an array of excellent plans made particularly for first time home buyers.
The First Time Home Buyer RRSP Plan, the Ontario Land Transfer Tax Credit as well as the Toronto Land Transfer Tax Credit are the three major plans that the government has presented for the people who want to buy home for the first time in Ontario. Both the RRSP home buyers plan and the Ontario land transfer tax credit are obtainable nation wide. The Toronto land transfer tax credit is only available to first time home buyers purchasing in Toronto. No other cities in Ontario at this time have their personal municipal land transfer tax.
Here is a summary of the programs:
First Time Home Buyer RRSP Plan (HBP) - This program enables a first time home buyer to remove up to $25,000 from their RRSPs to purchase or make a house. You need to repay the amount you withdrew within 15 years which should be repaid annually at the minimum amount of 1/15 of the withdrawn sum. If the entire $25,000 is withdrawn, the minimum yearly repayment will be $1,667. However, if someone is unable to repay the minimum amount in any year, then the remaining balance amount is deposited in the tax payer's income. This is an excellent program for people who have RRSP's prepared however don't possess sufficient money for a down payment.
The Ontario Land Transfer Tax Credit - This is a refund of the cost of the provinces land transfer tax up to a maximum of $2,000. The first time home buyer can ask for the complete maximum amount or a proportion of the maximum repay amount. This will allow a first time home buyer to purchase a home up to $227,500 without having to pay any land transfer fee. Any amount greater than $227,500 is taxed a rate of around 1.5%. To qualify the property should be owner occupied.
The Toronto Land Transfer Tax Credit - Very similar to the Ontario Land Transfer Tax Credit however it only applies to homes purchased in the city of Toronto. The rebate money is also greater at $3725. However, if first time home buyer wants to purchase a home in Toronto which is worth $400,000 will not be obliged to pay any Toronto land transfer tax . Any excess amount higher than $400,000 will be taxed at a rate of 2%. To be eligible for this program, you need to check the property has to be occupied by the owner of the home.
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Author Resource:-
To see how much you can qualify for or how much your mortgage payments would be, use our Ontario mortgage calculator. Programs also exist for home buyers who have good credit (a beacon score of 650 or higher) but do not have an RRSP or a sufficient down payment. This program is not exclusive to first time home buyers. For more information, see 'No money down mortgage' on our Ontario first time home buyer page. If you would like more information on any of these programs, please contact me at www.ontariomortgagesuperstore.com.
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