KNOW SOMEONE PAYING A HUGE AMOUNT IN RENT when they could own their home? Here are some ideas from the Government as incentives for FIRST-TIME BUYERS:
HOME BUYERS' PLAN: This plan allows eligible people to withdraw up to $25,000 tax free from their Registered Retirement Savings Plan to purchase or build a qualifying home. To qualify as a first-time home buyer you can not have owned a home as a principal residence for four years before the date of the withdrawal of funds. People using this plan have to start repaying the amount two years after withdrawing the funds and the quantity must be entirely repaid within 15 years.www.cra-arc.gc.ca/tx/ndvdls/tpcs/rrsp-reer/hbp-rap/menu-eng.html
TAX FREE SAVINGS ACCOUNT: Tax free savings accounts (TFSA) allow people to save money and to not pay tax on any interest accrued. This is a great way to save for a down payment on a home as the money is often more accessible than with an RRSP. Information at www.servicecanada.gc.ca/eng/lifeevents/buying_a_home.shtml
GST NEW HOUSING REBATE PROGRAM: Newly built homes are subject to five percent GST but there are some circumstances when you may be eligible to claim a rebate for a part of the GST you pay on the purchase price of, or cost of bulding, your home. If the home you buy is less than $350,000, you can claim a GST rebate to a maximum of $8,750. For homes priced between $350,000 and $450,000, the GST rebate is reduced proportionately. New homes priced at $450,000 or higher before GST do not receive a rebate. Information at: www.servicecanada.gc.ca/eng/goc/gst_new_housing.shtml
HOME BUYERS TAX CREDIT (HBTC): Like the Home Buyers' Plan, if you have not lived in another home owned by you or your spouse or common-law partner in any of the four preceding years and you acquire a qualifying home (a housing unit located in Canada that will be your principal residence), you can claim an amount of $5,000 for the Home Buyers' Tax Credit. This provides up to $750 in federal tax relief. This initative is designed to help first-time homebuyers with the costs associated with the purchase of a home such as legal fees and land transfer taxes. This tax credit is claimed on income tax returns in the year you purchase a home. There is also opportunity for individuals, who purchase a home that is more accessible for a disabled person, to claim this tax credit.www.cra-arc.gc.ca/gncy/bdgt/2009/fqhbtc-eng.html
LAND TRANSFER TAX CREDIT (ONTARIO): For Ontario residents, you can claim up to $2000 if you are purchasing a home as a princial residence as long as you and your spouse or common-law partner has never owned a home or an interest in a home anywhere in the world. Applications for this tax credit must be made within 18 months of purchasing the property. Documents and forms must be completed and provided to either the Land Registry Office or the Ontario Minister of Finance. For information go to: www.rev.gov.on.ca/english/refund/newhome/index.html
DOWN PAYMENT ASSISTANCE PROGRAM SIMCOE COUNTY: The Homeownership Program aims to assist low-to-moderate income renter households to purchase an affordable home by providing 10% down payment assistance in the form of aforgivable loan. The Program provides renter households with the opportunity to move to homeownership thereby freeing up rental units, encouraging developers to build affordable housing and fostering demand.Applicants are encouraged to apply even though there is a waiting list for this program(please note no new subsequent funding is known beyond March 2015). www.county.simcoe.on.ca/healthsocialservices/socialhousing/canadaontarioaffordablehousingprogramshomeownershipprogram/index.htm
Information exerpted from Genworth Canada publications September 2012. Please confirm all details independently before relying on this information.