First Time Buyer Incentives

There are several programs available in Ontario to assist first time buyers.  Here are a few that may be of interest to you

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Home Buyer's Plan - Using your RRSP to buy a home

This program is through the federal government which allows an individual, who is a qualified first-time home buyer, to withdraw up to$20,000 tax-free from his/her RRSPs (that's $40,000 per couple) to buy or build a qualified home, located in Canada and be the buyer's principal residence. The borrower must be a resident of Canada and must not have previously participated in the Home Buyers' Plan. To participate, you must complete "Form T1036" and talk to institution that holds your RRSPs .
 

Ontario Home Ownership Savings Plan (OHOSP)

The Ontario government created this program to encourage first-time homebuyers into the real estate market. The Plan may be opened at any financial institution. It is a savings account, earning interest at the rate the institution is offering, and since the OHOSP is not a tax shelter, any interest earned is taxable. Depending on your income, a maximum annual contribution to the plan could give you an Ontario Tax Credit of up to $500 ($1,000 per couple) on your income tax return. To qualify, your net income must not exceed $40,000 ($80,000 per couple). There is no limit to how much you contribute, but the credit is based on a maximum contribution of $2,000 ($4,000 per couple) per year. You may make contributions for up to 5 consecutive years, and once it's closed, you must purchase within 2 years after that. Ask your mortgage professional about this Plan for more information.

 

Land Transfer Tax Rebate

If you are a first time buyer of a newly constructed home or resale home, you could receive a refund of land transfer tax up to a maximum of $2,0000.  See the website or call 1-800-263-7965 for more information.

 

Home Ownership Assistance Program - City of London

Periodically the City of London, partners with the Government of Canada to assist qualifying home buyers receive down payment assistance of 5% of the cost of the home under the program. The down payment assistance will be provided to eligible purchasers at the time of closing of the purchase and sale of the home.  Home buyers can also receive another 3% of the cost of the home to assist in paying “closing costs” including legal fees and disbursements, and registration on title.  Persons must apply to the city for this program and there is a time limit, once available funds are gone, the program ceases.