Buying a home for the first time? The Government of Ontario wants to make it easier.
Purchasing your first home can be a rewarding process with big rewards, but sometimes something will pop up to make your journey just a little bit sweeter. If you’ve been considering buying your first home, this is probably the best time to put a roof over your head.
Starting January 1st, 2017, the process of investing in your first property will immediately earn you back up to $4000. The Ontario Minister of Finance, Charles Sousa, implemented the change recently to help Ontarians get into the real estate market. The rebate is a return on the amount you pay for the land transfer tax during the process of purchasing your home. While these are still funds you need to pay upfront, it’s something you can expect to get back after buying!
The former Ontario portion rebate, which only came to a total of $2000, has now been doubled to account for $4000. We did the math for you, and this means that if your dream home is costing you $368,000 or less, you’re paying absolutely zero dollars in Provincial Land Transfer Taxes! Everyone can delight in getting out of paying taxes, especially when it’s legal and you’re not even quite sure what a land transfer tax is.
This is also a step in the right direction for Torontonians. Currently, Toronto is the only municipality where it is authorized to charge a secondary land transfer tax. This is unfortunate with prices already booming in the city, but based on the change within the province it is expected that the city of Toronto will follow suit. If they do, the rebate could double to an $8000 return. That kind of money is crucial when you’re just starting out in the market!
If you’re wondering how it works, it’s fairly simple. A rebate is a sum of money that you receive back after making a purchase.
For this rebate in particular, it’s fairly simple to qualify. You must be a legal adult of 18 or over who is a permanent Ontario resident and has never previously owned a home. See? Simple! There are, of course, a few other legal stipulations, but they are also very modest. You will need to occupy the property as your main residence within 9 months of purchasing it, but when your real estate agent finds you the home of your dreams, it’s a safe bet you won’t even want to wait 9 days before unloading the moving truck.
Clearly there is also an application process, as there is with all rebates, but in this case it’s really easy to qualify and totally worth it to put that money back in your savings account!
This rebate is specifically for all you first time homebuyers, but will also continue to benefit you going forward. The possibility of additional discounts for homebuyers was economically countered by increasing tax rates on homes that cost $2 million or more, which (unless you’re coming from an incredibly wealthy place in your life) probably isn’t going to apply to your first place.
But the most important thing to remember is that this is just an added bonus to your purchasing experience. Before buying your first home, there are still plenty of things to consider. You may be reimbursed $4000, but are you ready to spend that much on renovations? Perhaps this isn’t the only rebate you’re eligible for, and you’d like to investigate? Maybe you haven’t even considered buying into the real estate market and it’s time for a change of heart!
When you’re considering making the plunge into ownership, this is just one of the many things to consider. If you want to learn more about this, and other benefits to buying a place, contact The Raymond Yong Real Estate Group at (416) 906-9863 or [email protected].
