First Time Home Buyer

Buying your first home is one of the largest investments of your life. Canada’s Economic Action Plan introduces the First-Time Home Buyers’ (FTHB) Tax Credit and the expansion of the Home Buyers’ Plan (HBP) to provide you with additional benefits and help you realize your dream of homeownership.

First-Time Home Buyers' (FTHB) Tax Credit

The costs associated with purchasing a home, such as legal fees, disbursements and land transfer taxes, can be a particular burden for first-time homebuyers who must pay these costs, as well as save money for a down payment. To assist first-time homebuyers with the costs associated with the purchase of a home, the Government of Canada introduced a FTHB Tax Credit in 2009 — a $5,000 non-refundable income tax credit amount on a qualifying home acquired after January 27, 2009. For an eligible individual, the credit will provide up to $750 in federal tax relief starting in 2009.

Expansion of the Home Buyers' Plan (HBP)

To provide first-time homebuyers with greater access to their RRSP savings to purchase or build a home, the Government of Canada has increased the Home Buyers’ Plan withdrawal limit to $25,000 from $20,000 per person for withdrawals made after January 27, 2009. For complete information click here.

To obtain more information on the First-Time Home Buyers’ Tax Credit and the Home Buyers’ Plan, call 1-800-O-Canada or visit the Canada Revenue Agency website at www.cra.gc.ca.

Land Transfer Tax Refunds For First-Time Homebuyers

The amount of the refund claimed will, if granted, offset the land transfer tax payable. The
maximum amount refundable is $2,000.

  Cost of Home     Tax Payable     Tax Refund      Net Tax Payable
$100,000 $725 $725 $0
$200,000 $1,725 $1,725 $0
$300,000 $2,975 $2,000 $975

for more information on the land transfer tax refund click here.

If you would like a booklet with more details regarding the above, please contact me and I would be happy to provide one for you free of charge.

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RE/MAX Eastern Realty Inc., Brokerage - Peterborough
91 GEORGE ST. N. P.O.BOX 2409
PETERBOROUGH ON  K9J7Y8
(705) 743-9111
Real Estate License # 4652942