As of March 2009 there are 3 programs that are available to first time home buyers.
1. The RRSP withdrawal limit has been raised form 20,000 to $25,000. The repayment rules pretty much stay the same. The money withdrawn must be paid back over a period of not more than 15 years. Repayment starts the second year following the year of withdrawals. If you pay back less than the scheduled annual payment, then the amount that isn't repaid must be reported as income on your tax return for that year. i.e. Oct 09 you withdraw 24,000. from your RRSP to finance the purchase of a home. Your 1st annual payment of $1,600.00 (24 divided by 15 years) is due Dec 31, 2011.
2. In the Budget of 2009, a new non-refundable tax credit was introduced for 1st time home buyers. To qualify for this credit you must purchase a qualifying home and neither the home buyer or their spouse or common in law partner can have owned a home in the preceding four years.
3. First time home buyers may be eligible for a refund of all or part of the Land Transfer Tax. The maximum refund amount is $2000. Your lawyer will claim it on your behalf at the time of title registration. To qualify you must be 18 years old, buying a principal residence to live in and must not have owned a home or interest in a home anywhere in the world. In addition your spouse must never have had interest in a home while they were your spouse.
If you need more information on any of these programs please give me a call.
Jill Fyffe
Sutton Group All Pro Realty Inc
748-5600 ext # 1019
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