Being a first time buyer can be tough. With rising home prices and a competitive market, it is important to know about all of the costs (and savings!) available. One of the best savings available to first time buyers is the land transfer tax credit. It is a one-time savings available to first time buyers across Canada (varying by province and sometimes city).
First time home buyer benefits
All home buyers are subject to paying land transfer taxes when purchasing their property. First time home buyers, can apply for a rebate from the government, as long as they qualify for it. The maximum provincial provincial (Ontario) LTT rebate is $4,000. While in BC, the LTT rebate is up to $8,000.
Municipal first time home buyer benefits
In addition to the provincial land transfer rebate, first time home buyers in some cities, like Toronto can also apply for a land transfer tax rebate from the municipality. The maximum Toronto LTT rebate is $4,475.
Why it’s important
This is important information that should be understood well before the purchase transaction closes. Closing costs are a very important factor that many people do not consider when purchasing a home for the first time. You can read more about closing costs here.
Wait, there are more costs than just the price of the home?
A mistake that buyers often make is that when calculating the price and affordability of their future home, they do not take into account the closing costs that are associated with the home purchase (closing costs generally account for 1.5-3% of the home purchase price). Among the costs, below are a list of the most common to keep an eye out for and budget into your plans. Learn more about what these costs can be here.
How to get it/want more information?
When applying for a mortgage, make sure the representative you are working with knows that you are a first time buyer. They will be able to do the work from there. We'd love to help and provide more info. Simply apply online today in only 5 minutes and one of our Advisors would love to provide more information from there! APPLY