First-time home buyer assistance is an important part of Canada’s stability and well-being. Approximately 35% of home sales are attributed to first-time home buyers depending on the year. First-time home buyers can save money by taking advantage of several different programs offered by the Canadian government.
The HBTC is an income tax credit to encourage first time home buyers to enter the housing market and purchase a home. It is a non-refundable tax credit that reduces the amount of federal income tax you have to pay. It’s part of first-time home buyer assistance available.
2. RRSP Home Buyers Plan
The Home Buyers’ Plan allows you to withdraw up to from your RRSP on a tax-free basis for the purchase of your first home. The withdrawal isn’t taxable as long as you pay it back.
3. Land Transfer Tax Rebate
Whenever a property is acquired in Canada, a property tax of some sort is charged by the province where the property was sold. If you’re a first-time buyer, you may not have to pay a land transfer tax or you may be eligible for a reduced land transfer tax.
4. GST/HST New Housing Rebate
When buying the first home the GST or HST taxes need to be paid just like almost everything else purchased in Canada. You may be qualified to get some of the GST or HST back through the government’s New Housing Rebate.