Tags
First Time Home Buyers, First Time Home Buyers Tax Credit, Ontario Land Transfer Tax, RRSP withdrawal
RRSP WITHDRAWAL AS A DOWNPAYMENT
The Home Buyers’ Plan (HBP) is a government of Canada plan that allows first-time home buyers to withdraw up to $25,000 PER BUYER, from an RRSP to buy or build a home without having to pay tax on the withdrawal. Generally you have 15 years to pay back your withdrawal and your repayment period starts 2 years after the withdrawal. However you are free to pay the full amount at any time before the 15 year time frame. If you are buying or helping to buy or build a home for someone related to you with a disability, you too may take advantage of the Home Buyers Plan.
See here for more information: http://www.cra-arc.gc.ca/hbp/
First-Time Home buyers’ Tax Credit: $750.00
First-Time Home Buyers’ Tax Credit (HBTC) is to assist first-time home buyers with the costs associated with the purchase of a home, such as legal fees, disbursements and land transfer taxes. The HBTC amount will apply to qualifying homes purchased after January 27, 2009, and will provide up to $750 in a Tax Credit. First time home buyers purchasing a home may claim the HBTC on their income tax returns. If you like to check out more:
http://www.cra-arc.gc.ca/hbtc/
Ontario Land Transfer Tax: $4,000
Ontario’s Land Transfer Tax is a provincial tax payable by the purchaser of a property. Therefore, if you purchase a property or land, you are responsible for paying Land Transfer Tax to the Province at the time the transaction closes. First time home buyers receive a reduction of up to $4,000.00 on Ontario Land Transfer Tax.
Marg DeBoer 