Government Programs

First-Time Home Buyers’ Tax Credit

Jan 9th

Posted by EC in Buying a Home

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Program

First-time home buyers may be eligible for a 15 per-cent income tax credit
for closing costs.

Details

  • To assist first-time home buyers with the costs related to the purchase of a home.
  • The First-Time Home Buyers’ Credit (FTHBC) provides a 15 percent credit on a maximum of $5,000 of home purchase costs (e.g. legal fees, land transfer taxes, etc.), meaning maximum tax relief of $750.
  • Applicable to first-time buyers purchasing a home closing after January 27, 2009.
  • The FTHBC is claimable for the taxation year in which the home is acquired.
  • An individual will be considered a first-time home buyer if neither the individual nor the individual’s spouse or common-law partner owned and lived in another home in the calendar year of the home purchase or in any of the four preceding calendar years.

For more information contact us today: 416-648-4080 or visit www.fin.gc.ca

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GST New Housing Rebate

Jan 9th

Posted by EC in Buying a Home

No comments

Program

You may be eligible to claim a rebate for a part of the GST you pay on the purchase price or cost of building your home if:

  • you buy a new or substantially renovated home (including the land or if you lease the land) from a builder
  • you buy a new mobile home (including a modular home) or a floating home from a builder or vendor
  • you buy a share of capital stock of a co-operative housing corporation
  • you construct or substantially renovate your own home, or carry out
    a major addition (or hire another person to do so) or
  • your home is destroyed in a fire and is subsequently rebuilt.

Details

  • Resale homes are exempt from the GST.
  • New homes are subject to the GST. New home buyers can apply for a 36% rebate of the GST applicable to the purchase price to a maximum of $6,300 for homes costing $350,000 or less before GST.
  • For new homes priced between $350,000 and $450,000 before GST, the GST rebate would be reduced proportionately.
  • New homes priced $450,000 before GST or higher would not receive a rebate.

NOTE: In the Greater Toronto Area, most builders include the GST in the price of the house, and any rebate would be assignable to the builder as they would be absorbing the net GST cost.

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