Being a first-time homebuyer can be exciting and nerve-racking all at the same time, but having tax breaks to help you save money is now more than just a little perk.
Did you know - eligible, permanent resident, first-time homebuyers in Ontario can have their land transfer tax refunded? This means that on purchases of up to $368 000, the FTHB will get a rebate or refund of $4000 which they can use to help cover other closing costs (such as legal fees or home inspections), buy furniture, etc.
A purchase price of more than $368 000 will still get the $4000 rebate but tax will be payable on the balance. If one of the purchasers is not a FTHB then the rebate will be proportionate to the ownership each buyer has in the property (i.e.: parents and a child buy a home together and only the child is a FTHB ~ the rebate would be based on 50% ownership by the child).
Land transfer taxes have increased substantially over the years, and with house prices being much higher than before the pandemic the tax has increased in tandem. That makes this incentive extremely valuable for those FTHB’s who have enough for a down payment but may struggle to round up that extra cash for taxes and closing costs.
Click here for more information on this great tax break and please feel free to contact me directly about this or any other mortgage related questions you may have.
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