one year, you can carry over the unused contribution room forward the following year. Finally, you can make withdrawals in a lump sum or in a series within 30 days of moving into your new home.
First-Time Home Buyers’ Tax Credit
The First-Time Home Buyers’ Tax Credit (HBTC), first introduced in the 2009 federal budget, allows first-time homebuyers to recover some of the costs related to their purchase. Specifically, this non-refundable tax credit covers inspections, legal fees, and other similar closing costs and is valued at up to $1,500. Dwellings that qualify for the tax credit include new and existing single-family homes, condos, townhomes, semi-detached homes, and duplexes. However, the requirement to be a first-time buyer does not apply if you have a disability. In addition, you must claim the credit in the tax year you purchased your home.
Land Transfer Tax Rebate
Homes purchased in Canada are subject to a land transfer tax ranging from 0.5% to 2.0% of the purchase price. Depending on where you are located, this can equal thousands of dollars. However, suppose you are a first-time homebuyer purchasing in British Columbia, Ontario, or Prince Edward Island. In that case, you may be eligible to receive a rebate on a portion of the land transfer tax. In addition to the provincial rebate, first-time homebuyers in Toronto can receive a refund on the city’s land transfer tax. Other provinces and municipalities may also offer different rebate programs to help residents offset the cost of land transfer tax.
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