First time Home BuyerQ: I'm wondering if there are any benefits other than the $25000 tax-free RRSP withdraw for first time home buyers. I believe the Land transfer tax is waived.
Are there any other benefits? and what isn't covered?
A: if you're buying in Peel region they have some sort of loan ($10k) that doesn't accrue interest if your family income is below $70k/year. You only pay back the loan if you sell the house within some certain time period otherwise the loan will be forgiven after x years. Something to look into but the wait time to qualify might be more than 3 months.
A2: You do get a credit for the land transfer tax (up to $2000). You still have to pay the difference if it exceeds $2000.
A3: peel program is coming to an end. Application was suppose to be in for Jan.31st and need firm offer by end of March with closing by July. I know the people who run the program their and you might still be able to get in.
Max amount is 10K and is forgiven after 20 years!
we still have some fairly decent cash back program available.
4.69% with a 2% cash back
5.7% with the full 5% for down payment.
BTW, i work as broker.
A4: OP is in Vancouver. I have no idea where the "Peel region" is, but it's not here.
OP, there is a new tax credit for first time home buyers intended to cover closing costs:
A5: You'll claim this on your 2009 tax return, which you would be filing a year from now.
It really has nothing to do with closing costs, that's just how Harper sold it when he brought it in. It's a $750 non-refundable tax credit for first time home buyers, that's it.
Practically speaking (for most people), this means that if you're a first-time buyer this year, just claim this on your 2009 tax return and $750 will be tacked on to your refund cheque.
A6: Just looked this one up because I was almost certain it was only $20000 tax-free RRSP withdrawl for 1st time homebuyers. Turns out The RRSP Home Buyers Plan withdrawal limits per individual have increased to $25,000 from $20,000, effective Jan. 27, 2009