Tax Rebates
There are rebates available from the federal and provincial governments in support of home ownership, for which you may be eligible.
When you buy a new house or a substantially renovated one as your primary place of residence, you may be entitled to a rebate of part of the federal goods and services tax. You can receive several thousands of dollars, although the amount decreases when houses cost more than $350,000 and disappears on houses costing more than $450,000 (a situation BILD is working aggressively to make fairer to consumers).
However, you should be aware that in the competitive GTA housing market, the tax is normally included in the sales price. As a result, the rebate is already accounted for, and in the purchase agreement you sign over the rebate to the builder. Information on this program is available online or by calling Canada Customs and Revenue Agency at 1-800-959-5525.
First-time buyers on newly-built homes in Ontario, with certain restrictions, may apply for a rebate for part of their land transfer tax. The maximum rebate is $2,000, which is roughly the amount payable on homes priced up to $240,000, including GST. For more information, call 1-800-263-7965.
In addition to high ratio mortgages and using RRSP funds for down payments, both discussed earlier, you may also be able to take advantage of
a tax deduction for your moving expenses. A summary of all these programs is available on our site here.
