Although Real Estate Prices have continued to rise, it is a fact that Real Estate continues to be a great investment over the long term.   It does not matter if that real estate is in Georgetown, Acton, Erin, Halton Hills, Norval, Ballinafad, Hillsburg, Rockwood, Guelph...anywhere...nor does it matter if it is detached, a semi, a townhome, a condominium or even vacant land...it is Real Estate and it is a great investment! 

There are a couple of rebates that First-Time Buyers should be aware of.  The first revolves around Land Transfer Tax.  The second is the RRSP Home Buyers Plan 

LAND TRANSFER TAX REBATE

Land Transfer Tax can be a rude awakening for buyers, especially First-Time Buyers, who are unaware of all the costs involved in purchasing their first home.

Land Transfer Tax is assessed on the transfer of property in Ontario and is based on the value of the property at rates between one and two percent.  This bad news only gets worst if you are purchasing in the GTA where the Municipal Land Transfer Tax is added to Land Transfer Tax...which in effect doubles the amount to be paid.

Here's the Good News!

• First-Time Buyers may qualify for an Ontario Land Tranfer Tax Rebate of up to $2,000 on purchase of newly constructed and resale homes.
• First-Time Buyers may also qualify for a Toronto Land Transfer Tax rebate of up to $3,725 on newly constructed or resale homes.
• The Buyer must be 18 yrears of age.
• The home must be owner occupied no later than nine months after closing.
• If the rebate is claimed at time of registration, it may offset the Land Transfer Tax ordinarily payable.  If not claimed at registration, the refund may be claimed directly from the Ministry of Revenue.
• Buyers (including spouses) cannot have  a home, or an interest in a home, anywhere in the world.
• In the case of a newly constructed home, you must be entitled to a Tarion New Home Warranty.  For information on this program Click Here.

It would be prudent to discuss this with your REALTOR®  and your lawyer prior to closing.

To access the Government Bulletin on Land Transfer Tax Click Here.

To access the Rebate Form Click Here.

RRSP HOME BUYERS PLAN

• The RRSP Home Buyers Plan withdrawal limits per individual has increased to $25,000 from $20,000.

HBTC (First time buyers' tax credit)

• Qualifications:
  • Your or your spouse or common-law partner did not live in another home owned by you or your spouse or common-law partner in any of the four preceding years.
  • If you are a person with a disbility or are buying a home for a related person with a disbility, you do not have to be a First-Time Buyer to get the HBTC.  However, the home must be in an environment better suited to the personal needs and care of that person.
  • A qualifying home is a unit located in Canada.
  • The home must be occupied within one year of purchase.
  • The home must be registered in your or your spouse or common law spouse's name in accordance with the applicable land registration system.
  • You do not have to submit documents supporting your purchase transaction with your Income Tax and Benefit Return.  However, you have to make sure that this information is available if Canada Revenue asks for it.

For more information on HBTC Click Here. 

    Deborah Gilmore...Your Trusted Source For Anything Real Estate!