Home Buyers' Plan
First time buyers can withdraw up to $25,000 tax free from their RRSP to purchase a principal residence property. Re-payments must begin two years after the withdrawal date, and the entire amount must be repaid within 15 years. For more details visit www.servicecanada.gc.ca
Land Transfer Tax Credits
First time home buyers are eligible for 2 rebates: There is a first time home buyer provincial (Ontario) land transfer tax rebate of up to $2,000. There is also a first time buyer municipal (Toronto) land transfer tax rebate of up to $3,725.
Home Buyers' Tax Credit
First time buyers can claim a $5000 tax credit which provides up to $750 in federal tax relief. The tax credit is claimed on income tax returns in the year of purchase. For more details visit www.actionplan.gc.ca/eng/index.asp