Buyers Corner

The Government of Ontario provides incentives to its citizens who are first-time home buyers. You can receive a land transfer tax refund in Ontario of up to $4,000. What this means is if the purchase price of your home is less than $368,000, you would pay no land transfer tax. If the purchase price is greater than $368,000, then you would receive the maximum refund of $4,000. This incentive applies for both new construction and resale homes.

 Frequently Asked Questions:

 Who qualifies as a first-time home buyer in Ontario?

To qualify as a first-time home buyer, you must not have owned a home previously anywhere in the world, or have any interest or stake in a home. Your spouse must not have owned or have an interest in a home while they were your spouse. To be eligible for Ontario's land transfer tax refund, you must also be at least 18 years old.

How do I qualify for Ontario’s Land Transfer Tax Refund?

In addition to being a first-time home buyer and being 18 years old, you must also be a Canadian citizen or a permanent resident. If you are currently not a Canadian citizen or a permanent resident, you have 18 months after your home registration to become one to qualify for the refund. The home you are purchasing must be your principal residence within nine months.

While you can claim the refund when registering your property to offset the land transfer tax payable, you have up to 18 months after registration to claim the refund.

If one or more purchasers of the home is not a first-time home buyer, you may still be eligible for a refund of your land transfer tax. For example, if two individuals purchase a home but only one of them is a first-time home buyer, then only 50% of the transfer tax refund can be claimed.

The Home Buyers' Plan or HBP is an interest and tax-free way to borrow up to $35,000 from your RRSP savings to buy or build a home for yourself or a related person with a disability. You have up to 17 years to repay your loan starting from the year you take out the money. After repaying your HBP, you can also use the HBP again multiple times as long as you continue to meet its eligibility criteria.

Maximum Withdrawal:$35,000 Per Person From Their RRSPWho It's For:First-time Home Buyers Looking to Buy or Build a HomeTime to Pay Back:15 Years (Up to 17)Interest or Fees:NoneEligiblity Criteria:

• You have not lived in a home that you or your partner owned in the past 4 years
• You are a resident of Canada
• You already have a written contract to buy a home
• You will use the home as your principal place of residence within one year of buying or building it

 Buying is generally recommended if you plan to reside in an area for a long period of time. There are many advantages to buying a home, and these include:

• No Evictions: If you rent, you are always at risk of being evicted. For example, the Landlord and Tenant Board in Ontario allows landlords to evict tenants if they are selling the property, using it for personal use, or renovating the property. If you own your home, you will almost always have the right to live in it.
• Rental Income: If you have spare rooms or suites in your new home, you can rent them out for extra income. The rent you collect can help you cover your mortgage payments. To check how much rental income a rental property can generate for you, use WOWA’s Rental Property Calculator.
• Better Saving Habits: Purchasing a home will help you build better saving habits and become more financially disciplined. Not only do you have to save up for a down payment, but you will also be required to pay mortgage payments every month. These payments can help to keep you financially accountable when it comes to spending.
• Long Term Investment: A home can be a long-term investment. If property prices in your area rise, you can benefit from the increase when you eventually sell your home. You can also tap into your home equity at very low interest rates using a mortgage refinancing or a Home Equity Line of Credit (HELOC)