July 8, 20263 min read
If you are planning a purchase, understanding this topic before you submit an application can prevent surprises. First-time buyers in Ontario may be able to combine federal savings programs with provincial or municipal tax relief, depending on eligibility and the property being purchased.
Key points to understand
Here is what matters most:
- The First Home Savings account can provide tax-deductible contributions and tax-free qualifying withdrawals.
- The federal Home Buyers' plan can allow eligible RRSP withdrawals for a qualifying home, subject to repayment rules.
- Ontario offers a land transfer tax refund for eligible first-time homebuyers, and Toronto has a separate municipal land transfer tax system with its own rebate rules.
- Insured mortgage rules can allow up to 30-year amortizations for eligible first-time buyers, reducing required monthly payments while increasing total interest over time.
Program rules change, so confirm the current eligibility and deadlines before building them into your purchase plan.
Want this applied to your own numbers?
Call Phil Cragg at 866-349-4915 or request a written comparison.
Request a rate quote