First-Time Home Buyer Programs & Incentives For Toronto Home Buyers
Are you a first-time home buyer in Toronto? Here is a list of programs and incentives from the government that may be available to you to help you buy your first home in Toronto!
Canada Home Buyers' Plan
This plan allows first-time home buyers to borrow up to $60,000 from your RRSP on a tax-free basis if you intend to live in your home within one year after buying it. Funds must be returned to your RRSP within 15 years time.
Learn more: Canada.ca
Canada First Home Savings Program
First-time home buyers under age 40 can contribute up to $8,000 a year into a new savings account, which is tax-deductible just like an RRSP account, up to a lifetime contribution limit of $40,000. Withdrawals for the purchase of a home will also be tax-free, just like the TFSA account. If the funds are not used by age 40, these funds will be merged with your RRSP account.
Learn more: Canada.ca
CMHC Insured Mortgages
Financing for Purchase: Home buyers can qualify for a lower downpayment if they purchase Canada Mortgage and Housing Corporation (CMHC) mortgage insurance.
The minimum downpayment is 5% for the first $500,000 of home value, and then 10% for the remainder portion of the home value. This program is only available for homes costing less than $1,500,000. Note that the maximum borrowing amount can be limited based on your income and existing debt.
Learn more: CMHC
Refinancing For Construction: Homeowners can also refinance their home with an insured mortgage to fund the construction of new legal units, provided that either you or a close relative lives in one of them, with a maximum of 4 units total. You can borrow up to 90% of the completed property value, as long as the total value doesn’t exceed $2,000,000, and the refinancing amount doesn’t surpass the project costs. Note that the maximum borrowing amount can be limited based on your income and existing debt.
Learn more: CMHC
Toronto & Ontario Land Transfer Tax Rebates
First-time home buyers can get a land transfer tax rebate from the City of Toronto for up to $4,475 if you live in your home within nine months after buying it.
First-time home buyers can get a land transfer tax rebate from the Province of Ontario for up to $4,000 if you live in your home within nine months after buying it.
Learn more: Toronto.ca and Ontario.ca
Canada Home Buyers' Tax Credit
Home buyers can claim 15% of up to $10,000 of the cost of buying a home (for a maximum of $1,500 in tax credits), provided that you did not live in a home owned by you in the preceding four years.
Learn more: Canada.ca
Canada Multi-Generational Home Renovation Tax Credit
Families can claim 15% of up to $50,000 (for a maximum of $7,500 in tax credits) in eligible renovation and construction costs incurred in order to construct a secondary suite for multi-generational living.
Learn more: Canada.caCanada HST New Residential Rental Property Rebate
You can claim up to 100% of the HST you spent constructing new rental units as a rebate after construction.
Learn more: Canada.ca and our explainer.
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