1. RRSP Home Buyers’ Plan
One great source of funding for your mortgage down payment is a Registered Retirement Savings Plan (RRSP). The Canadian government’s Home Buyers’ Plan (HBP) allows first time home buyers to borrow up to $35,000 from your RRSP for a down payment, tax-free. If you’re purchasing with someone who is also a first time homebuyer, you can both access $35,000 from your RRSP for a combined total of $70,000. However, since the HBP is considered a loan, it must be repaid within 15 years.
2. Land Transfer Tax Rebate
In the province of Ontario and the city of Toronto, there is a rebate available to help first-time homebuyers offset the cost of their land transfer tax.
|Rebate will cover LTT to a maximum home value of||$368,333||$400,000|
|Partial refund available?||50% refund if spouse does not qualify||50% refund if spouse does not qualify|
You must meet the following criteria:
- You must be a Canadian citizen or permanent resident of Canada,
- You must be 18 years of age or older,
- You must live in the home within 9 months of purchasing it,
- You cannot have owned a home before, and
- If you have a spouse, they cannot have owned a home during the time they have been your spouse.