RRSP Home Buyer’s Plan
The Home Buyer’s Plan (HBP) is a government program that allows home buyers to withdraw up to $25,000 from their Registered Retirement Saving Plan (RRSP) towards buying or building a new home.
Before withdrawing funds, you have to be entered into a written agreement specifying whether you will be buying or building your new home. You also must occupy this space no later than a year after buying or building this new home.
It would be best if you were considered a first-time buyer to take advantage of this program. However, you are not a first-time home buyer if you (or your spouse) have owned a home you have occupied as your principal residence in the past five years.
Once those conditions are met, each person can withdraw up to $25,000 tax-free from their RRSP for a new home. Couples, including common-law, can withdraw up to $50,000. You will not pay income tax on these amounts as long as these funds are repaid into an RRSP.
Existing homeowners can also use this program to purchase an accessible home or a home for a disabled dependent relative. The intended individual must qualify for the Disability Tax Credit (DTC), and this home must be more accessible or better suited to the care of this individual.
Land Transfer Tax Rebates
First-time buyers of new and re-sale homes are eligible for provincial and Toronto land transfer taxes rebates rebates. The maximum that first-time home buyers can receive for local land transfer tax (LTT) is $2,000,;; for the Toronto LTT,, it is is $3,725.
The provincial LTT is payable anywhere in Ontario, including Toronto. As mentioned before, the maximum that a first-time buyer can receive for the provincial LTT is $2,000. For re-sale homes, the provincial rebate only applies to first-time buyers who entered Agreements of Purchase and Sale after December 13, 2007.
Toronto LTT is payable only for properties in the City of Toronto. refore, theTherefore, the maximum a first-time home buyer can receive is $3,725. The Toronto LTT rebates are in addition to any provincial LTT rebate the buyer qualifies for.
The buyer is considered a first-time buyer for the provincial and Toronto LTT if they are at least 18 years of age and must not have previously owned a home anywhere in the world at any time. In addition, if addition, if a spouse is involved, the spouse cannot have owned a home or had any ownership interest in a home while they were the purchaser’s spouse.
HST New Housing Rebate
The Home Buyer’s Plan (HBP) is a government program that allows home buyers to withdraw up to $25,000 from their Registered Retirement Saving Plan (RRSP) towards buying or building a new home.
Before withdrawing funds, you have to be entered into a written agreement specifying whether you will be buying or building your new home. You also must occupy this space no later than a year after buying or building this new home.
It would be best if you were considered a first-time buyer to take advantage of this program. However, you are not a first-time home buyer if you (or your spouse) have owned a home you have occupied as your principal residence in the past five years.
Once those conditions are met, each person can withdraw up to $25,000 tax-free from their RRSP for a new home. Couples, including common-law, can withdraw up to $50,000. You will not pay income tax on these amounts as long as these funds are repaid into an RRSP.
Existing homeowners can also use this program to purchase an accessible home or a home for a disabled dependent relative. The intended individual must qualify for the Disability Tax Credit (DTC), and this home must be more accessible or better suited to the care of this individual.