TAX CREDIT
The Government wants to help first
time home buyers with a tax credit. The credit works out to a maximum of $750
for qualifying home purchasers. To
qualify, the home must be in Canada, and can be new or already built. It can be
a detached, semi, town, condo, or apartment, and must be registered in both
names. A buyer who has not owned a home in the last 4 years also qualifies. This
can be found on line 369 of your income tax return. If you want me to send you the quick video,
let me know. www.cra.gc.ca/hbtc RRSP Home Buyers Plan
The Home Buyers' Plan (HBP) is a program that allows you to withdraw funds from your RRSP at no cost or penalty to buy/build a home for yourself or for a related person with disability. You can withdraw up to $25,000 in a calendar year. Your RRSP contributions must remain in the RRSP for at least 90 days. You will be required to repay back the entire amount to your RRSPs over a 15 year period, that starts 2 years after funds are withdrawn. You will not be able to withdraw the funds from your RRSP without a completed purchase agreement, so funds cannot be used from RRSP as your OFFER deposit at the time of offer, as no deal will be completed yet. They will be withdrawn on closing and applied towards house, or give to you as a cheque. So make sure you have funds to cover the deposit at time of offer.
TOP 5 MISTAKES FOR FIRST TIME BUYERS
1. They buy at the wrong time
2. They are ambushed by hidden closing
costs
3. They don’t get the agreement reviewed
by lawyer
4. They don’t bother with an inspection
5. They don’t the know process and
timelines
#1 TIP FOR NEW HOME BUYERS = Do Your
Homework
You will want to lay the groundwork for a successful
home purchase, by figuring out how much house you can
afford and how much we want to borrow. This means meeting with a mortgage
broker or your bank, reviewing your family finances, and thinking about the
needs and wants you have in a home. For the rest of my tips for New Home
Buyers, email me at randyhart@royallepage.ca
Royal LePage Burloak Real Estate Services
