For first-time home buyers, making that first purchase can be an intimidating process. To that end, we at VIP Condos Toronto recognize the difficulty of this process for those who are not well-versed with the real estate market. On this page you can find a selection of informative pages and links to help make the buying of your first home go as smoothly as possible:
- First Time Buyers Incentive. In order to ensure that buyers are not saddled with an unwieldy amount of financial burden, a range of programs & incentives are available. These include special mortgages, mortgage insurance and an array of tax credits. For more info, visit our page that describes them in detail.
- First Home Savings Account (FHSA). Beginning in April 2023, eligible (Canadian residents over the age of 18) first-time home buyers are able to open FHSA accounts. Yearly contributions are capped at $8,000 (up to a total of $40,000), and a maximum of $8,000 of unused contribution space can be carried to the following year. Accounts can stay open for a maximum of 15 years, or until the end of the year that the account holder turns 71. Most notably, unlike RRSPs FHSAs have tax-free income growth and qualified withdrawals are tax-free. In addition, withdrawals do not need to be paid back over 15 years, as required in the Home Buyers’ Program. Money from FHSAs, RRSPs (as part of the HBP) can be used together, up to a total of $75,000. Read more about FHSAs here.
- RRSP Withdrawals. As part of the Government of Canada’s Home Buyers’ Plan, a maximum of $35,000 per individual (or $70,000 per couple) can be withdrawn from an RRSP account to help finance the purchase of a new home. More info on this topic can be found here.
- Land Transfer Tax Rebates. While not available in all provinces, Ontario provides refunds on land transfer taxes on purchases above $368,000. The maximum available refund amount for provincial taxes is $4,400, while the cap for municipal refunds is $4,475. Ratehub has developed a tool to calculate individual refund amounts, and you can use it here.
- Mortgages. Choosing the mortgage plan that is right for you is a daunting task-especially if it is your first time buying a home. As a result, VIP Condos Toronto has compiled a useful list of tools to aide in this task.
- Benefits of Investing. The Greater Toronto Area is one of North America’s hottest residential real estate markets. Buying property here can lead to a very high return-on-investment. There are a variety of ways to do so, but investing in real estate is a great way for first-time buyers to increase their net worth. Read more about this topic here and here.