Being a first-time home buyer can be daunting. In addition to finding the home of your dreams, you also need to make sure you make the right decision when it comes to mortgage loans, as well as trying to get a low mortgage rate.
As a first-time home buyer, one of the best things you can do is hire a mortgage professional to guide you through the mortgage application process. A mortgage professional can help you make sense of the often confusing process of applying for, and receiving, a mortgage loan. They can also help you get a low mortgage rate. For many people, their mortgage will be the biggest loan they ever receive, and it’s very important to go into the process with a full understanding of different types of mortgage loans in order to figure out which is best for you. A mortgage professional can help you with this.
Benefits Of First-time Home Buyers In Ontario
The Ontario government wants to help out first-time home buyers as well, by offering benefits and tax rebates. Here are some benefits first-time home buyers in Ontario should definitely take advantage of!
Land Transfer Tax Refund
The Ontario government offers first-time home buyers rebates on land transfer tax. Land transfer tax is part of the closing cost of purchasing a property and is based on the amount paid for the land or on the fair market value of the land.
First-time home buyers are eligible to receive a land transfer tax refund of $4,000, which means they don’t pay land transfer tax on the first $368,000 of their home’s price.
Home Buyer’s Plan
As a first-time home buyer, you are able to use your RRSP towards a down payment with the Home Buyer’s Plan. Under this plan, you are able to withdraw up to $25,000 from your RRSP to go towards a down payment on your first home. An added plus is that if you and your partner each withdraw from your RRSPs, you can withdraw up to $50,000. This is an interest-free loan that must be paid back over 15 years.
First-Time Home Buyer’s Tax Credit
If you have not owned a home within the last four years, you may be eligible for a tax credit. This credit is calculated based on federal income tax rates.
This benefit isn’t exclusive to first-time buyers, but they can certainly benefit from it! There are a variety of rebates you can receive by making sure your home is energy efficient.
Navigate the mortgage application process, save money by finding a low mortgage rate, and take advantage of these first-time home buyer’s benefits by speaking to one of our professional mortgage consultants. Contact us today to set up your first consultation!