There are 4 programs for the First Time Buyers.
1) Home Buyer Tax Credit (HBTC) (up to $750)
You can receive up to $750 back from the federal government by applying for the home buyer tax credit in the year the home was purchased. To obtain the tax credit, complete line 369 on your personal income tax return.
You will qualify for the HBTC if:
If you buy a house, with a spouse or common-law partner, either one of you can claim the credit or you can share the credit. However, the total of your combined claims cannot exceed $750. You must occupy the home as your principle residence no later than one year after the home was purchased.
2) RRSP Plan (up to $25,000)
The First Time Home Buyers RRSP Plan (HBP) allows first time home buyers to withdraw up to $25,000 from RRSPs to buy or build a home for yourself or for a related person with a disability. The withdrawn amount must be repaid within 15 years, subject to a minimum annual repayment that is 1/15 of the amount withdrawn. If the full $25,000 is withdrawn, the minimum annual repayment is $1,667. If less than the minimum is repaid in any particular year, the balance is added to the taxpayer’s income. To qualify for the Home Buyers Plan, an individual must not have not owned a home during the last 4 full calender years.
3) Ontarion Land Transfer Tax Credit (up to $8,475)
The Land Transfer Tax Credit is a refund of the cost of the provinces land transfer tax up to a maximum of $8,475 if the buyer purchased a home in Toronto or $4,000 for the home not in Toronto. This will allow first time home buyers to purchase a home up to $400,000 without having to pay any land transfer fee. Any amount higher than $400,000 is taxed a rate of approximately 1.5%. To qualify the property must be owner occupied. The first time home purchaser may claim the full maximum amount or a proportion of the maximum refund amount. To qualify for the Land Transfer Tax Credit, you cannot have ever owned a home, or an interest in a home, anywhere in the world. The refund can be given instantly at the lawyers office but advise the lawyer prior to the closing date if you qualify for the rebate
4) First-Time Home Buyer Incentive
The Incentive is like a second mortgage on your home. Your first mortgage must be greater than 80% of the value of the property and is subject to a mortgage loan insurance premium. It also must be eligible through Canada Guaranty, CMHC or Sagen.
How it works:
It allows you to borrow 5 or 10% of the purchase price of a home. You pay back the same percentage of the value of your home when you sell it or within a 25-year window. The incentive amount is 5% or 10% on New Construction, 5% on Existing Home.
It works like this: