Let’s begin with First Time Homebuyers
The First Home Savings Account program was created by the Federal Government in 2023 to allow new home buyers to save up a down payment in a tax-free environment.
Each year you can contribute up to $8,000 up to a personal maximum of $40,000, allowing you and a partner to save up to $80,000 in down payment, tax-free.
If you need to build some more room in the down payment there is also the Home Buyers Plan which allows you to withdraw up to $35,000 from your RRSP savings and repay it over a 15-year period without tax implications. This can be combined with the First Home Savings Account down payment.
First-Time Home Buyers Incentive
Is another Federal Government program to help people purchase their first home. With this incentive the Federal Government helps you with the down payment, offering up to 5% on resale homes and up to 10% on new builds in exchange for the equivalent equity in your home.
There are Income, Property Value, and Mortgage ratio requirements to this program, so a great discussion to have with your Mortgage Broker when considering your options.
This incentive will need to be paid back after 25 years or when you sell the home, equal to 5 or 10% of the market value of the home at the time with a maximum of 8% gain per year.
Land Transfer Tax Refund for First-Time Homebuyers
When you buy real estate in Ontario, you pay land transfer tax. In Toronto you pay double, thank goodness we’re in Ottawa!
First-time homebuyers may be eligible for a refund of all or part of the tax up to $4,000 and is typically applied for by your lawyer during the closing process. Be sure to ask if you qualify.
If you are buying a new construction home, unlike with resale you will have to pay GST & HST on the purchase price.
The GST portion of a new home purchase or renovation can be rebated to all Canadians who qualify not just first-time home buyers, and is calculated at 36% of the GST paid up to a maximum of $6,300 depending on the value of the home or renovation.
In Ontario, there is an HST rebate program as well that rebates up to 75% of the HST paid to a maximum of $30,000.
So if you are buying a new construction or building a home be sure to check with a tax specialist to get your maximum rebates.
Additionally in Ontario, there is a New Residential Rental Property rebate, so if you are buying an income property to rent out you are also eligible for an HST rebate once you can prove the property is rented.
Now let’s talk about Renovation programs:
The Multigenerational Home Renovation Tax Credit (MHRTC)
The newest tax credit to be offered to homeowners, the MHRTC is designed to make it more affordable for multiple members of the same family to live together in one dwelling. This credit offers a refund for eligible expenses for renovations that create self-contained secondary units, such as “in-law suites”. Up to $50,000 can be claimed for each completed qualifying renovation with a credit of 15% of costs incurred.
The Greener Homes Grant or Home Efficiency Rebate Program
Delivered by Natural Resources Canada and Enbridge Gas here in Ontario. Grants of up to $10,600 are provided to eligible homeowners to upgrade their primary home’s insulation, air sealing, windows and doors, heat pumps, smart thermostats and more energy-efficient upgrades.
And the Canada Greener Homes Loan can be applied to these same upgrades in an interest-free loan of up to $40,000 with a repayment term of 10 years.
Locally we have the Better Homes Ottawa Loan Program
Which allows Ottawa homeowners to access low-interest loans of up to $125,000…maximum of 10% of the current value of their home…to cover the cost of home energy improvements.
This is a 20-year, 4.33% fixed-interest loan from the City of Ottawa itself.
Finally the Home Accessibility Tax Credit
is a non-refundable tax credit for renovations that make the home accessible for those with disabilities. The alterations must be created to allow an individual to be mobile or functional within the dwelling, gain access to the building, or reduce their risk of harm within it. The Accessibility Credit has an annual expense limit of $20,000.
I hope this gives you some ideas on how you can reduce your costs when buying or renovating a home. If you want any more info on any of these programs give me a call at 613-788-2113. I’d love to chat about your real estate needs.
Thanks for watching. For more information about the Ottawa real estate market visit https://www.thetulipteam.com/
At The Tulip Team, we know you want to be a comfortable and confident homeowner. In order to do that you need a knowledgeable and experienced team estate team to help you buy or sell your home in Ottawa.
| The Tulip Team – Your Ottawa REALTORS®
| http://www.TheTulipTeam.com
| Direct ☎ 613-788-2113
| Email ✉ MoreInfo@TheTulipTeam.com
Team Lead | Bill Meyer**,
▶️Sales Team | Sylvie Bégin*, Keith Bray**, Len Huffman*, Saeideh Shabani**, Alex Wickham**, Ryan Brown**, Kayla Meyer**, Bryanne Rheault**, Naj Sadaat**, Farzin Hadisy**, Brad Closs* (CCIM, FRI),
➡️Support Team | Maria Roldan**, Tricia Echlin, Hayat Wehbe, & Dave Williams**
| *Broker | **Sales Representative
| RE/MAX Hallmark® Realty Group, Brokerage Independently Owned and Operated | Office 613-236-5959
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