Financial Programs for Brampton home buyers

You should not feel overwhelmed when you are buying your first home because there are actually financial programs in place for first time buyers. One such program is the Land Transfer Tax which applies to all land in Ontario. First time buyers may be able to get a refund of all or part of the tax payable.

-For agreements of purchase and sale before December 14, 2007, the refund is only applicable to the purchase of a new constructed home.

-sales after December 13, 2007, the refund applies to all homes.

Taxpayers can claim an immediate refund during the registration process electronically by completing statement under the Explanation tab which is under the electronic land transfer tax affidavit. Individuals can also register on paper and file through the Ontario Lands Transfer Tax Refund Affidavit for First Time Purchasers of Eligible Homes. This can be done at the Lands Registry Office. The Amount of the Refund will offset the land transfer tax payable. The maximum refund you can receive is $2,000.

Limitations

The refund could be reduced if one or more purchasers are not a first time home buyer. It will be based on the interest built by the individuals who qualify for the refund. A purchaser can also claim a refund in proportion to his or her spouse’s interest if the spouse has owned a home before the relationship. Here are the requirements for a refund:

-the purchaser must be in the home for at least nine months after the date of the conveyance.

-the purchaser cannot have owned a previous home.

-the purchasers spouse cannot have owned a home.

-the purchaser cannot have received an Ontario Home Ownership Savings Plan.

There is another program that can help first time home buyers. It is called the Home Buyers Plan. This plan allows an individual to withdraw as much as $25,000 from your registered retirement savings plan or RRSP in order to buy or build a home for yourself or a relation with a disability. Only the payment receiver can withdraw funds but you can make withdrawals from more than one RRSP as long as you are the plans owner. In order to participate you have to withdraw funds as a first time buyer or withdraw for a person with a disability. As well these conditions must be in place:

-You have to sign a written agreement with a builder, contractor, realtor or private seller.

-It has to be your first place of residence.

-Your HBP must be zero at the beginning of the New Year.

-Neither you nor your spouse owns the home more than 30 days before the withdrawal.

-You have to be a resident of Canada.

-You buy or build the home before October 1 of the year after the year of withdrawal.

If one of the conditions is not met while you are participating in the plan then your RRSP withdrawal will not be eligible. You have to include the RRSP withdrawal as an income on your tax return for the year you received the funds. If you don’t meet the requirements then you can always participate later in the future.

When looking for Brampton homes for sale be sure to look here
If thinking of selling your house consider hiring a Brampton real estate agent who charges low 1% commissions for full service.