Tips For First Time Hone Buyers

Tips for Getting Started

• Know your credit score
• Develop a budget
• Learn key mortgage terminology
• Determine how much you can afford
• Get pre-qualified
• Talk to a mortgage professional

RRSP Homebuyers Plan

Effective January 27, 2009, as a first time home buyer, you are allowed to withdraw up to $25,000 from your RRSP without penalty. This amount can be doubled with your partner to a total of $50,000. Participants of the Homebuyers plan must begin repayment to their RRSP within two years of withdrawing the funds.

Land or Property Transfer Tax Refunds

If you purchase land or an interest in land, you may be entitled to a refund of a Provincial Land Transfer tax.

In Ontario, qualified first time home buyers may be entitled to a refund of a provincial Land Transfer Tax up to a maximum of $2,000 or a home priced up to $227,500. There is also a first time buyers refund for homes purchased in the City of Toronto.

In British Columbia, qualified first-time buyers may receive a refund of Property Transfer Tax on homes valued up to $425,000.

First Time Home Buyers' Tax Credit

First time home buyers may eligible for a 15% income tax credit on a maximum of $5,000 of home purchase costs (e.g. legal fees, land transfer taxes) representing a tax relief of $750.

The tax credit is applicable to first-time home buyers purchasing a home with a closing date after January 27, 2009.