Mississauga Real Estate by Theresa Baird

Interest rates are at an historic low and many incentives are available to First-Time Homebuyers to help you purchase your first home.

The First-Time Home Buyers’ Tax Credit
A new tax credit was introduced based on an amount of $5,000 for first-time home buyers where the home closes after January 27, 2009. The credit is claimable for the taxation year in which the home was acquired. The refundof $750.00 will be savings towards legal fees, disbursements and the closing costs of your purchase. more information go to http://www.cra-arc.gc.ca/gncy/bdgt/2009/fqhbtc-eng.html.

Improvements to the Home Buyers’ Plan
An increase in the amount first-time homebuyers’ can withdraw from their RSP’s to purchase or build a home from $20,000 to $25,000. For more information go to http://www.cra-arc.gc.ca/E/pub/tg/rc4135/README.html

The Home Renovation Tax Credit
The credit will apply to expenditures in excess of $1,000, but not more than $10,000 resulting in a maximum credit of $1,350 per family. Expenditures for work performed or goods acquired after January 27, 2009 and before February 1, 2010 will be eligible for the credit.
For more information go to http://www.cra-arc.gc.ca/gncy/bdgt/2009/fqhmrnvtn-eng.html

Land Transfer Tax Rebate
In addition to new construction homes, if you are a first-time home buyer, you are eligible for a refund up to $2,000 on the purchase of your resale home. Your lawyer will make the necessary adjustments to the land transfer taxupon closing.
For more information go to http://www.rev.gov.on.ca/english/refund/newhome/

Cash Back Mortgage Option
If  you are having difficulty coming up with the down payment for the purchase of your home, cash back mortgage may be the solution for you. The lender will give you the 5% down payment that you require in exchange for ahigher interest rate.

Source: The Mortgage Centre