First Time Home Buyers

  1. First Time Home Buyers: Each owner can withdrawal up to $25,000 in RRSP for Downpayment, but this must repayed back over 15 years at equal payments into your RRSP.
  2. First-Time Homebuyer’s Tax Credit: Homebuyers who have not owned a home within the last four years may be eligible for the first-time homebuyer’s tax credit (HBTC) through the Government of Canada’s Economic Action plan. The credit is based on $5,000 multiplied by the lowest federal income tax rate for that year. For example, the lowest federal income tax rate for 2014 is 15%, so the value of the credit would be $750. You can learn more about the first time homebuyer’s tax credit on the Economic Action Plan website.  
  3. Land Transfer Tax: Click Below For Calculator: Land Transfer Tax (LTT)
  4. Refund As a first-time homebuyer, you can receive a refund from the Ontario government of up to $2,000 of the land transfer tax you paid on your first home. (Keep in mind, other provinces have similar programs.) To qualify for this refund, you must be 18 or older, you cannot have previously owned a home (or an interest in a home, which includes putting your name on the deed of your parent’s cottage in order to avoid probate fees), and this all applies to property anywhere in the world. Typically, your lawyer will apply for the fee as you finalize your real estate purchase, but if that doesn’t happen you have 18 months after the registration date of the sale.
  5. Deposit: When purchasing a property you will need to put a deposit with your offer, which is usually 3-5% of the purchase price when your offer is accepted. This deposit must be received within 24hrs of the accepted offer and will be forwarded to your downpayment on closing. 
  6. Lawyer fees: on closing range from $1,000-$2,000. 
  7. Title Insurance: $300-700  
  8. Home Inspection: Costs around $350-600 depending on the size of the house.
  9. Mortgage Financing: A rule of thumb is that the banks will lend you 5 times your income minus outstanding debts. The banks require that you put a minimum of a 5% deposit, but 20% is always preferred. If you are putting less then 20% deposit the bank will charge you a mortgage insurance fee which is usually about 2.5% of the mortgage, which they will add to your mortgage amount.
  10. Mortgage Appraisal: Costs around $300-600. The banks may require an appraisal before they lend you the money to ensure the value of the house is accurate. 
  11. Disclosure Forms: Each owner must provide Government issued ID for proof of Identity. 
  12. Buyer Representation: Each owner must sign the Buyer Representation form to clarify which Agent is representing them in the buying process.
  13. We have our own inhouse Lawyers, Home Inspectors and Mortgage Agents to offer you a Full Service Real Estate Experience!