Overview Of Canadian Home Buying IncentivesThe Homebuyer’s Plan
In the recent federal budget changes were made so first-time buyers can now withdraw up to $25,000 (formerly $20,000) from an RRSP tax-free for the purpose of buying a home, if qualified.
There are up to 15 years to repay the amount withdrew from the RRSPs. The first repayment is due the second year following the year in which the withdrawals were made. For each year of the repayment period, 1/15 of the total amount has to be repaid until the full amount is restored.
Applications are available through Canadian Revenue Agency at:http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/rrsp-reer/hbp-rap/menu-eng.htmlFirst- Time Home Buyers’ Tax Credit
A $750 tax credit for first-time home buyers to help with closing costs, such as legal fees, disbursements and land transfer taxes.
The tax credit can be claimed on your Federal Income Tax Return. Prospective first time home buyers should consult a qualified tax advisor or legal professional to make sure they qualify.