Special Programs for First Time Homebuyers

The Homebuyers Plan (HBP)

The Home Buyers' Plan (HBP) is a program that allows you to withdraw funds from your Registered Retirement Savings Plan (RRSP) to buy or build a qualifying home for yourself or for a related person with a disability. If you have money in a cashable RRSP account you can withdraw this money tax free and put it towards a downpayment or closing costs when you buy your first house. Currently, the maximum amount that an individual can withdraw in a calendar year from an RRSP to purchase or build a qualifying home without having to pay tax on the withdrawal is $25,000. This money must be repaid to your RRSP over a 15 year period, a minimum of 1/15ths of the amount borrowed every year. For more information on the HBP you can DOWNLOAD THE HBP GUIDE HERE.

Ontario First Time Homebuyers Land Transfer Tax Refund

First Time Homebuyers in Ontario may be eligible for a refund of part or all of their Land Transfer Taxes for Agreements of Purchase and Sale entered into after December 13 2007. The maximum amount of the refund is $2000. For more information visit here: http://www.rev.gov.on.ca/english/refund/newhome/