Canada’s real estate market has become tougher and more expensive than ever. First-time home buyers in Canada are struggling to beat investors in bidding wars and increased house prices. Luckily, the government of Canada and Ontario have many programs in place to make buying real estate in Canada possible for first-time home buyers. Continue reading to learn more about different programs that will aid you in buying a home in Mississauga.
RRSP Home Buyer’s Plan
One of the biggest struggles in purchasing a home in Mississauga is funding the down payment. As a first-time home buyer, you only need 5% down payment but considering the insanely high real estate prices, it is a sizable amount.
The Registered Retirement Savings Plan lets you borrow up to $35,000 from your RRSP account. If you’re buying the house with someone who’s a first-time home buyer as well, you can borrow a total of $70,000. For more information, please contact me and I’ll walk you through the eligibility and other requirements.
Land Transfer Tax Rebate
Whenever you buy a house in Mississauga, you have to take care of certain closing costs. Land transfer tax is one of them and also your biggest closing cost. It can be anywhere between 0.5 to 2% depending on the purchase value of the property in Mississauga.
As a first-time home buyer, you’ll get a provincial tax rebate in Mississauga. If you buy a house in Toronto, you are eligible for the provincial as well as City of Toronto’s land transfer tax rebate.
GST/HST New Housing Rebate
When you buy a newly-built home in Mississauga, you have to pay GST and HST. Under this program, you are eligible for upto 36% rebate on the GST/HST paid.
How to calculate new housing rebate?
– If your property value is upto $350,000, you qualify for 36% rebate.
– If your property value is between $350,000 to $450,000, you’ll get a partial refund.
– The maximum rebate is capped at $24,000 for homes valued over $450,000.
Please reach out to me, Ose Ainabe, for detailed explanations of these programs. I’d be happy to meet you in-person or virtually.
Ontario First-Time Home Buyer Tax Credit
Introduced in 2009, the Ontario First-time Home Buyer Tax Credit gives you a non-refundable $750 tax credit. You must claim it within one year of home purchase. When you are filing taxes, make sure to include it with your personal tax return under line 369.
Purchasing home as first-time home buyers in Mississauga
Mississauga has been a favourite among first-time home buyers in GTA because it’s affordable than Toronto, well-constructed roads, easy access to major highways including QEW, 401, 403, 407, and 410. Mississauga also has some of the best public and private schools, universities, and public libraries.
I am here to help, guide, and assist you in your home buying journey in Mississauga. Please feel free to contact me by email – firstname.lastname@example.org or phone number – +1 647-761-5237.