First Time Home Buyer Programs
Where Can I Learn About Them?

The Canadian Home Buyer Plan (HBP) is one of the first time home buyer programs available that allow a first time home buyer to withdraw up to $25,000 (after January 27, 2009) - tax-free - from their Registered Retirement Savings Plan (RRSP) to buy or build a qualifying home for themselves or for a related person with a disability. Under this plan, qualified buyers are permitted to apply said funds toward the down payment on a home. Amounts withdrawn under the HBP must be repaid over a 15-year period starting the second year following the year of the withdrawal.

First Time Home Buyer Tax Credit HBTC

For 2009 and subsequent years, another home buyer program is the HBTC, a non-refundable tax credit based on an amount of $5,000 for certain home buyers who buy (close) a qualifying home after January 27, 2009.

If you or your spouse or common-law partner haven't owned a home in the preceding 5 years, or are disabled or buying a home for a disabled person, you may qualify for this credit. It applies to either brand new or resale homes.

Land Transfer Tax Refunds under
First Time Home Buyer Programs

Land Transfer Tax (LTT) or Property Transfer Tax (PTT) applies to all conveyances of land in Canada. First-time home buyers in Ontario may be eligible for a refund of all or part of the tax payable. For Agreements of Purchase and Sale entered into before December 14, 2007, the refund applies only on the purchase of a newly constructed home. For agreements of purchase and sale dated after December 13, 2007, the refund applies to all brand new or resale homes. Any approved refund will offset the tax payable, with a maximum refund of $2,000.

For a more detailed explanation of the Land Transfer Tax, Property Transfer Tax and the Toronto Municipal Land Transfer Tax (TMLTT), as well as other closing costs, click here. Visit First Time Home Buyer Tax Credit for info in Canada. For information from the Ontario Ministry of Revenue regarding the Ontario Land Transfer Tax Rebate Program. And for info on Canada's Home Buyer Plan. Click this link for more information from Canada Mortgage and Housing Corporation on Canada's first time home buyer programs. 

If you're interested in learning more about buying and selling real estate, check out my book The Happy Agent. Learn how to properly prepare prior to entering the marketplace, how to navigate through the entire process of searching, finding and successfully negotiating the purchase of a suitable and affordable home, and much more. You'll also learn how to find and work with a competent realty agent.

When you consider the huge sum of money involved in acquiring a home, probably the biggest outlay of your life, a small investment of your time could save you thousands.

Available virtually everywhere print and e-books are sold.

I try to keep information current, but I suggest researching diligently on your own.

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