5 Home buyer incentive programs that could save you thousands
What – you’re not into throwing money out a window? We aren’t either. We know you’re busy scrolling through house listings so we’ve saved you a little research time by compiling this list of home buyer incentive programs that could put some money in your pocket.
Knowing about incentives and rebates you may be eligible for and having a great real estate team on your side can go a long way toward taking the angst out of your home buying experience. It can also make you and your bank account a lot happier.
5 Home Buyer Incentive Programs, Ontario:
1. Investment in Affordable Down-Payment Incentive, County of Simcoe
2. First-Time Home Buyer’s Tax Credit
3. RRSP Home Buyer’s Plan
4. Land Transfer Tax Refund
5. HST Rebate
1. You want to buy a house but you have one itsy bitsy little problem…the down payment
If you are new to the home ownership scene, this incentive is a big one! Offered by the County of Simcoe, the Investment in Affordable Down-Payment Incentive provides assistance by way of a forgivable loan to help you pull together a down payment. Qualifying individuals and families could receive a loan valued at 10% of the purchase price. The County of Simcoe currently commits to offering this program for a minimum of 15 years. Although there is a current waiting list, applicants are still encouraged to apply as loan paybacks continue to provide a revolving loan pool. If the purchaser holds ownership of the home for 20 years or more, loan repayment is waived. However, if the home is sold prior to 20 years of ownership, repayment will consist of the full incentive value plus 10% of the capital gain. If a capital loss is experienced, repayment will be reduced by the amount of loss.
Eligibility Criteria:
- Purchasing home must be located in Simcoe County
- Purchase price at or below $422,058
- Eligible property can be a resale or new build (modular homes on leased land or homes on reserve land are not eligible)
- The loan is considered by the Canadian Mortgage and Housing Corporation (CMHC) as homeowner equity and must be registered on title in second place
- Applicants must be a resident of Simcoe County in a current paying renter status with no current home investment or tenant arrears
- Applicants must also be of legal age holding Canadian citizenship, landed immigrant or refugee status possessing photo ID and birth certificate
- Must provide proof of mortgage pre-approval, proof of income $73,800 or less
- Personal assets cannot exceed $20,000
Program information
Application form
2. How newbies can catch a break on property taxes
You move into your home and whammo! The excitement ends when you’re slapped with an enormous property tax bill. Anyone stepping into home ownership should definitely be aware of this rebate! The First-Time Home Buyer’s Tax Credit could provide up to $5,000 in property tax relief. This incentive is only effective for those who have never previously owned a property or for those with a disability who are buying a home with special conditional aids.
Program Information
3. Get creative with your RRSPs
You’ve scrimped and saved to invest in your retirement dreams with a Registered Retirement Savings Plan (RRSP)…but what if those dreams include moving to a different home? The RRSP Home Buyer’s Plan allows any home buyer to withdraw up to $25,000 from their current RRSP savings to buy or build a home. Repayment of RRSP funds will begin the second year after withdrawal and allows up to 15 years for full repayment. If you haven’t started an investment in RRSPs, consider your options now for investment in that home of your dreams in the future!
Program Information
4. Transfer some of that Land Transfer Tax right into your pocket
When buying a property or investing in a piece of property in Ontario, purchasers pay a land transfer tax. But if you are a first-time buyer, you are in luck! New owners are eligible to receive a Land Transfer Tax Refund. Property purchases prior to January 1, 2017, were eligible for a full or partial refund up to a maximum value of $2,000. With fluctuations in the real estate market, this amount doubled as of January 1 to a maximum value of $4,000.
Program Information
5. There’s nothing more harmonious than Harmonized Sales Tax (HST) relief
Whether you’re a brand new home owner or a veteran of the housing market, you may find some financial relief by way of an HST Rebate. Home buyers are eligible if they have purchased a new home or shares in co-operative housing for the purpose of a primary residence. In addition, those who have made substantial renovations to an existing home will be eligible if the market value of the completed home remains under $450,000.
Program Information