This is a daunting time for anyone wanting to purchase a property but is especially so for First Time Buyers. The skyrocketing prices and low inventory have made this a very challenging market. There is some assistance out there for you if you know where to look. Here are a few options for your consideration.
LAND TRANSFER TAX REBATE
Land Transfer Tax is a calculated percentage based on your purchase price. If you are 18 years of age, and you or your spouse have not owned a property at anytime, anywhere in the world (First Time Buyers) you may be eligible for a rebate of up to $4,000.00. This does not include the LTT levied by the City of Toronto. If your lawyer files the appropriate documents at closing, this rebate is applied immediately to your closing costs. There are other terms and conditions.RRSP – PENALTY FREE WITHDRAWL
You may be eligible to withdraw up to $35,000 without penalty to apply to the purchase of your home. This will need to be repaid within 15 years. To qualify, you must be a First Time Buyer (not owned interest in a home in the past 4 years), you must have a written agreement to buy or build a home, you must be a resident of Canada, and you must intend to reside in the home as your primary residence within one year of buying or building the home. Again, there are other terms and condition.ONE TIME INCOME TAX CREDIT
You can claim a tax credit of $5,000 in the first year of your purchase if you or your spouse or your common law partner acquired a qualifying house, and if you did not live in a house owned by you or your spouse or common law partner in the year of acquisition or any of the 4 preceding years (First Time Buyer). And, again, there are terms and conditions.I hope this information is useful to you. Each of these options may have a different definition of what a First Time Buyer is so it's helpful to read the fine print. Circumstances are different for every individual and purchase; financial and legal matters should always be discussed with the appropriate expert to see how the options may work for you.
Helping first time buyers is one of my favourite things about my job! Call me. Let’s work together to make your dream come true in North Simcoe County, Georgian Bay and Muskoka.