Still hesitating to become a homeowner? Tax credits and incentive programs for those who want to buy a home may convince you to take the plunge. <\/p>\n\n\n\n
Buying a property has many advantages. In many cases, it is a way to safely invest your money and significantly increase your assets. As a general rule, the value of a normally maintained property will increase significantly over the years, making it easier to plan for retirement.<\/p>\n\n\n\n
Also, if you have trouble putting money aside for personal savings (TFSA, RRSP or non-registered account), buying a home and making regular payments will help you build a nice nest egg.<\/p>\n\n\n\n
Would you like to have more money for your down payment, transfer taxes (welcome tax), notary fees, new furniture, etc.? With the HBP, if you or your spouse or common-law partner are Canadian residents, you can withdraw up to $35,000 from your Registered Retirement Savings Plan (RRSP) at the time of your first home purchase, tax-free. A couple could get a total of $70,000.<\/p>\n\n\n\n
However, the amount withdrawn from your RRSP must be repaid gradually, over a maximum period of 15 years. <\/p>\n\n\n\n
Note that if you have not lived in a home that you or your common-law partner or spouse owned during the past four years, you are also considered a first-time home buyer.<\/p>\n\n\n\n
For more information on the HBP, visit this page<\/a>.<\/p>\n\n\n\n When purchasing a property, you may be eligible for the First-Time Homebuyer’s Tax Credit (FTHC) if:<\/p>\n\n\n\n you are a first-time homeowner (first-time buyer) or you have not resided in a home you owned in the year of purchase or in the 4 previous years;<\/p> <\/li>\n\n\n\n you did not reside in a home owned by your spouse or common-law partner in the year you purchased the property or in the 4 previous years;<\/p> <\/li>\n\n\n\n your application is for one of the following eligible dwellings:<\/p> <\/li>\n\n\n\n single-family home;<\/p> <\/li>\n\n\n\n semi-detached house (semi-detached);<\/p> <\/li>\n\n\n\n townhouse (city house);<\/p> <\/li>\n\n\n\n mobile home;<\/p> <\/li>\n\n\n\n condominiums;<\/p> <\/li>\n\n\n\n apartment in a duplex, triplex, quadruplex or apartment building. <\/p> <\/li>\n<\/ul>\n\n\n\n The $5,000 credit is a $750 tax refund, which can be allocated to one person or divided between two co-owners. <\/p>\n\n\n\n Why $750? Because the refund amount is calculated based on the lowest tax rate of 15% that the Canada Revenue Agency uses to multiply the $5,000 credit. <\/p>\n\n\n\n Persons with disabilities and their common-law partners or spouses may also be eligible for the $5,000 First-Time Home Buyers’ Tax Credit (HBTC) (i.e., a $750 tax refund given to one person or divided between two co-owners).<\/p>\n\n\n\n If this is the case, you will be eligible even if this is not your first property, you or your spouse owned a home in the year of purchase or in the four previous years, or you lived in a home that your spouse owned in the year of purchase or in the four previous years.<\/p>\n\n\n\n All Quebecers and Canadians who benefit from the Disability Tax Credit are entitled to the HBTC, as well as their common-law partners or spouses at the time of purchase of a qualifying home. <\/p>\n\n\n\n If you purchase a property in Quebec or elsewhere in Canada and wish to renovate it to improve its accessibility and\/or make it safer for an eligible person, you may be able to realize tax savings of up to $10,000 per year through the Home Accessibility Tax Credit. Note that you may also be able to benefit from this credit by renovating your existing home. <\/p>\n\n\n\n Those eligible for this credit are:<\/p>\n\n\n\n Specified individuals (i.e., individuals who qualify for the disability tax credit or those who are 65 years of age or older at the end of the year);<\/p> <\/li>\n\n\n\n Eligible individuals (the spouse or common-law partner or a family member of the specified individual – more details here<\/a>)<\/p> <\/li>\n<\/ul>\n\n\n\n If you are moving more than 40 km from your current home to be closer to your workplace or new job, start a new business, or go to school full-time, you may be able to take advantage of significant deductions on your moving expenses. Here are some examples:<\/p>\n\n\n\n These fees could be considered as eligible expenses on your income tax return and could save you significant amounts of money in taxes for the year in question.<\/p>\n\n\n\n Homeowners who telecommute (employees or self-employed) can take advantage of deductions for many home-related expenses, including mortgage interest, home insurance, municipal and school taxes and more. <\/p>\n\n\n\n When you purchase a new home, you will receive a partial GST\/QST rebate (just over half of the 5% GST and 9.975% QST), which will be deducted directly from the final price.<\/p>\n\n\n\n This rebate also applies to existing homes that have been substantially renovated (at least 90% of the interior of the home in question must have been removed and\/or replaced).<\/p>\n\n\n\n Homeowners wishing to build a new home can also take advantage of this partial rebate of the GST and QST on the cost of materials, equipment and labour, under certain conditions<\/a>. <\/p>\n\n\n","protected":false},"excerpt":{"rendered":" Still hesitating to become a homeowner? Tax credits and incentive programs for those who want to buy a home may convince you to take the plunge. Why buy a house? To build your wealth! Buying a property has many advantages. In many cases, it is a way to safely invest your money and significantly increase […]<\/p>\n","protected":false},"author":1,"featured_media":7648,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1,3],"tags":[],"class_list":["post-6557","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-non-classifiee","category-uncategorized","has-post-title","has-post-date","has-post-category","has-post-tag","has-post-comment","has-post-author",""],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\tThe First-Time Homebuyers’ Tax Credit (HBTC): its benefits and eligibility requirements<\/h2>\n\n\n\n
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The CIAPH: more flexible conditions for people with disabilities<\/h2>\n\n\n\n
The Home Affordability Tax Credit (HATC)<\/h2>\n\n\n\n
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Moving Expenses for Work or Education Deduction <\/h2>\n\n\n\n
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Deductions for home office expenses<\/h2>\n\n\n\n
Partial refund of sales taxes (GST\/QST)<\/h2>\n\n\n\n