If you're planning on buying a house in Toronto or the GTA, you don't need to go it alone. Depending on your personal status and the home itself, you could be eligible for several governmental rebates or savings programs that can really lighten the monetary load. Buying a new home in Richmond Hill, Newmarket, Vaughan, the city's core and all across the GTA doesn't come cheap, so be sure to save money where you can!

RRSP Home Buyer’s Plan

The Home Buyer’s Plan (or just HBP) allows you to use your future savings for an immediate investment in real estate. To be more specific, the HBP can allow a buyer to take $25,000 tax-free out of their Registered Retirement Saving’s Plan (RRSP) to help in the purchase/building of a home.

A written agreement will have to be drawn up specifying your plan to either build or buy a new home in order to take part in the RRSP-HBP, a document that will need to be prepared a full year in advance. Also, only first-time buyers are eligible for this funding program.

If you’re purchasing a home with a partner, keep in mind that both parties can withdraw $$25,000 from their respective RRSP. Married and common-law couples are able to withdraw a maximum of $50,000 together.

While the Home Buyer’s Plan is geared towards first-time buyers, even those who are already homeowners can benefit from the program under certain conditions. If you are an existing home owner who is planning on buying an accessible home or a house for a disabled dependent relative, you can take part in the HBP program. Note that the individual in question must be eligible for the Disability Tax Credit and the home itself must prove to be better equipped to house the disabled.

Land Transfer Tax Rebates

When considering the purchase of new or re-sale homes, first-time buyers should keep Land Transfer Tax Rebates in mind. The rebates work for homes in the province of Ontario and in the City of Toronto, appropriately titled the provincial land transfer tax (LTT) and Toronto LTT, respectively.

Both LTTs are only eligible for first-time buyers, so anyone over eighteen years old that has never owned a home in Canada or elsewhere. The provincial LTT is set at a cap of $2,000, and can be applied when purchasing a new home anywhere in Ontario. First-time buyers purchasing re-sale homes are also eligible for the provincial LTT.

As the name would suggest, the Toronto LTT only applies to properties based within the City of Toronto. A first-time buyer can receive up to $3,725 with the Toronto LTT, a sum that can be compounded with the provincial LTT.

HST New Housing Rebate

Looking to buy a new home or build one yourself? Cash in on some savings through the HST New Housing Rebate program, a funding initiative that will give you back some of the money you spent on the harmonized sales tax when buying a new home or constructing one. This rebate is applicable when purchasing a brand new home, a mobile home, a newly renovated house, along with your existing home should it need to be rebuilt after major damages.

The HST rebate works on something of a sliding scale, with the total amount of the rebate dependant on the price of the home itself. When buying a new home at a price of $350,000 or less, buyers can receive a 36% rebate from the purchase price’s HST, up to $6,300. The maximum rebate is lowered when buying a home priced anywhere from $350,000 to $450,000 and the rebate does not apply on homes priced over $450,000.

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