First-time homebuyers have an opportunity to use their RRSP contribution towards a down payment, thanks to the Canadian Revenue Agency’s Homebuyer’s Plan. First-time homebuyers can withdraw up to $25,000 from an RRSP without penalty.
Land Transfer Tax Refund
When you buy land or an interest in land in Ontario, you pay land transfer tax. First-time homebuyers of an eligible home may be eligible for a Land Transfer Tax Refund of all or part of the tax, up to $4,000.
First-Time Homebuyer’s Tax Credit
The credit is based on $5,000 multiplied by the lowest federal income tax rate for that year. For example, the lowest federal income tax rate for 2014 is 15 per cent, so the value of the credit would be $750.
GST/HST New Housing Rebate
First-time homebuyers residing in provinces (Ontario) that have combined provincial and federal sales tax into HST, are eligible for an HST tax rebate through the federal government. The program is designed to help with the federal portion of the HST new homebuyers have to pay. You can find out if you’re eligible for an HST New Housing Rebate, as well as all necessary application forms on Service Canada’s website.
Energy Efficient Housing
There are many ways homeowners can benefit from buying or building energy efficient homes. Along with a variety of national energy efficient building programs, there are also a variety of province-specific rebates and cost-saving programs to help build a more sustainable home. Be sure to consult federal and provincial energy efficient home programs to explore ways you can save by going green, as well as their guide to what to look for when purchasing an energy efficient home.