What Benefits Can You Enjoy As A First-Time Home Buyer In Canada?

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When thinking of the benefits behind buying a home for the first time, the thing that will definitely cross your mind is the fact that having your own home is already the best benefit you will be able to get in the process. Much more than this, however, there are benefits that every first-time Canadian homeowner will be able to enjoy. In fact, these benefits will all boil down to better savings on your part. Want to know what these benefits are? Simply read through the following.

Benefit from opening a savings account savings account

This is not just any savings account but an account called the Ontario Home Ownership Savings Plan. This type of savings account allows you to open an account with the aforementioned institution. It is like contributing a fixed amount of your income so you can avail of a rebate amounting to $500 via a tax refund. If you and your partner both use this plan, you will be able to get a rebate of $1000 a year. You can use the same to finance your home purchase.

Benefit from the Registered Retirement Savings Plan or RRSP

If you have a Home Buyer's Plan (HBP) then you will be able to take advantage of the RRSP to fund your first-time home investment. You can get as much as $25,000 from your RRSP to finance your investment. Again, if you and your partner both have HBP's, this entitles you to double that amount. Meaning, you can withdraw up to $50,000 to finance the investment. Imagine how much ease you will feel knowing there is an account you can use to initially finance or replenish the cost you have spent for investing in your new Canadian home. This is a big amount that can lessen your burden at all cost.

Benefit from a buyer's tax credit

In Canada, there is such a thing as buyer's tax credit for first time home buyers. You or your spouse can claim this when you file your taxes on the next year after you have completed your home purchase. The tax credit can be as much as $5,000 provided you and your spouse have lived in the said property for the last four years.

Benefit from another tax refund

The perks of being a first-time home buyer in Canada do not stop with just a single benefit. In fact, it extends up to what is called the Land Transfer Tax Refund. In this program, the Ontario government allows refund amounting to up to $2,000 on the corresponding land transfer tax you have paid for your first home. This will mean lesser tax burden on your part thus helping you stabilise your finances. Take note though that you can only avail of the refund if you have applied for such within 18 months after the home purchase.

With all of these great benefits the Canadian government is offering first-time home buyers, why are you still hesitating to purchase your dream home? Once you have made the decision, feel free to check out your mortgage options!

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