Tips for Getting Started
(For First Time Buyers)
- Know your credit score
- Develop a budget
- Learn key mortgage terminology
- Determine how much you can afford
- Get pre-qualified
- Talk to a mortgage professional
RRSP Homebuyers Plan
As a first time homebuyer, you are allowed to withdraw up to $20,000 from your RRSP without penalty. This amount can be doubled with your partner to a total of $40,000. RRSP Homebuyers plan must be repaid over a period of 15 years. Participants of the Homebuyers plan must begin repayment to their RRSP within two years of withdrawing the funds and amounts must be repaid within 15 years.
Land or Property Transfer Tax Refunds
If you purchase land or an interest in land, you may be entitled to a refund of a Provincial Land Transfer tax.
In Ontario, qualified first time home buyers may be entitled to a refund of a provincial Land Transfer Tax up to a maximum of $2,000 or a home priced up to $227,500. There is also a first time buyers refund for homes purchased in the City of Toronto.
In British Columbia, qualified first-time buyers may receive a refund of Property Transfer Tax on homes valued up to $425,000.
For more information, talk to your mortgage professional or visit http://www.sbr.gov.bc.ca/individuals/property_taxes/Property_Transfer_Tax/first_Time_home_buyer.htm