30 Oct What Incentives are Available for First Time Home Buyers
What Incentives are Available for First Time Home Buyers
There usually are incentives given to first-time homebuyers. Knowing them helps you access them, you can ask your real estate agent for more information about first time home buyer incentives. These incentives are in the form of loans, mortgages, rebates and tax credits that may be given by the government. The incentives on most occasions have requirements that must be met.
There are many incentives to aid you in the process of owning your own home. Forget about a perfect credit score. All you need is this information to set you on the path of owning your own home.
1. First Time Home Buyers Tax Credit
The first-time home buyers tax credit provides financial relief for first time home buyers by offering an income tax credit of $5,000 which is non-refundable. The tax credit will extend up to $750 should your new home qualify for the generous tax incentive. You and your partner must have acquired a qualifying home and you mustn’t be currently living in a house you own four years before applying to qualify for the tax credit.
2. RRSP Home Buyer’s Plan
The registered retirement savings plan also known as RRSP is a savings plan to which you or your spouse contribute. The income gotten from RRSP is not taxable in as much as the funds remain in the plan. The program allows you to withdraw money from your RRSP a sum of $25,0000 annually to buy or build a house for a disabled person or yourself. The 2019 budget proposes to increase this amount to $35,000. To qualify for the HBP, you must be a first time home buyer. You must have also written an agreement to build a qualifying home for yourself.
3. Land Transfer Tax Refunds
First time home buyers who have not previously owned any house anywhere in the world are eligible for this refund in Canada. When you acquire land, there is a certain tax you are required to pay. The land transfer tax refund is a rebate of a part of the tax earlier paid. The major criteria are being at least 18 years of age and not previously owning any house by any means. The amount differs according to location.
4. GST/HST Rebate
Do not forget to take a look at the kitchen. There is a need for a clean, spacious cabinet and clean countertops to make cooking, cleaning, and kneading easy. If the kitchen has granite countertops or quartz countertops, that will be great. Installing kitchen countertops is usually one of the home improvements carried out to increase the value of a house to be sold.
5. First Time Home Buyer Incentive
The first time home buyer incentive is a recent initiative to help many families across the country in the purchase of their first homes. The program offers 5-10 percent on the purchase of newly constructed homes, 5percent on an already existing structure and 5percent on new/old mobile homes. Your income should be $120,000 or less annually to qualify.