Whether you are purchasing your first house, or simply buying a new home, there are several programs in place to help you buy. If you are a first-time buyer, you may benefit from tax credits and options to help you with a down payment. GST rebates are also available for all buyers. Below are just a few of the programs available to you.
GST New Housing Rebate
Are you purchasing a house priced at $450,000 or less (pre-GST)? Will the new home be your primary residence? If so, Canada Revenue Agency offers a GST rebate which is based proportionately on the price of the home.
New home buyers can apply for a rebate of the 5% GST if the purchase price is $350,000 or less. The rebate is up to 36% of the GST to a maximum rebate of $6,300. There is a proportional GST rebate for new homes costing between $350,000 and $450,000. There is no rebate for homes priced over $450,000.
This rebate helps buyers at lower price-points reduce cost of owning, encouraging ownership over renting.
First Time Home Buyer’s Tax Credit
This federal non-refundable income tax credit is for qualifying buyers of detached, attached, apartment condominiums, mobile homes or shares in a cooperative housing corporation.
It’s calculated by multiplying the lowest personal income tax rate for the year by $5,000.
First Time Home Buyer’s Plan
If you are looking to purchase your first home, this program is in place to help you with your down payment by allowing tax-free RRSP withdrawals (per person) up to $25,000. Couples can use up to $50,000.
This withdrawal is considered a type of loan, and must be repaid within 15 years. The home must be the purchasers’ primary residence, and the home buyers must not have owned a home within the past five years.
Disabled home buyers upgrading to a more accessible home also qualify, as do family members helping disabled home buyers. Home buyers who have already used the plan and have fully repaid their RRSP may be eligible to use the plan a second time.
Contact a show home (or your Area Manager) to find out more!