As a first-time homebuyer in Ontario, Canada, there are several mortgage programs and incentives available to assist you in purchasing your first home. Here are some notable options:
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First-Time Home Buyer Incentive (FTHBI): This program, offered by the Government of Canada, allows eligible first-time homebuyers to finance a portion of their home purchase through a shared equity mortgage with the government. The incentive provides funding of 5% for resale homes or 10% for newly constructed homes, which can help lower your mortgage payments.
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Home Buyers' Plan (HBP): The HBP allows first-time homebuyers to withdraw up to $35,000 from their Registered Retirement Savings Plan (RRSP) to put towards a down payment. The withdrawn amount is tax-free, and you have up to 15 years to repay the funds back into your RRSP.
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Land Transfer Tax Refunds: First-time homebuyers in Ontario may be eligible for a refund of all or part of the provincial land transfer tax. The maximum refund amount is $4,000, which can help reduce your upfront costs.
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GST/HST New Housing Rebate: If you purchase a new construction home or undertake substantial renovations, you may be eligible for a rebate on the Goods and Services Tax (GST) or Harmonized Sales Tax (HST) paid. The rebate can help offset some of the costs associated with buying a new home.
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First-Time Homebuyer Tax Credit: This federal tax credit provides a non-refundable credit of $5,000 for first-time homebuyers, which can help reduce your overall tax burden.
It's important to note that these programs may have specific eligibility criteria, income limits, and other requirements. It's recommended to consult with a mortgage professional or financial advisor to determine your eligibility and understand the details of each program. They can guide you through the application process and help you access the benefits available to first-time homebuyers in Ontario.