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Abbe Sheedy Realty

Office: 519-657-2020. Direct: 519-694-4312

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    • Home
    • Search Listings
    • Buyer
      • Services
      • First Time Home Buyer
      • Neighbourhoods
      • Buyers Package
      • FAQ
      • Investing In London
    • Seller
      • Services
      • Home Appraisal
      • Renovations
      • FAQ
    • Resources
      • London Developments
      • Monthly Newsletters
      • Support Local
      • London Price Points
      • How To License a Rental
    • About Me
    • Contact Me
Abbe Sheedy Realty

Office: 519-657-2020. Direct: 519-694-4312

  • Home
  • Search Listings
  • Buyer
  • Seller
  • Resources
  • About Me
  • Contact Me

Welcome

Buying your first home is nerve racking for anyone. There is lots to learn and often not a lot of time to learn it in. This page highlights some important money, and time savers that every first time home buyer should know about. 

3 Financial Supports For First Time Home Buyers

First Time Home Buyer Land Transfer Tax Rebate

When buying a home in Ontario, you will be subject to land transfer tax to the provincial government at the time of closing. The amount owed is based on your property's value. In order to further support first time home buyers, the government will refund you up to $4,000 for this tax payment, to a maximum home value of $368,333. 

Some key pieces of information to be aware of when applying for this program is that this rebate must be claimed within 18 months of ownership. You must also be aware that if your spouse does not qualify you will only be eligible to receive 50% of the rebate. 


Criteria To Be Eligible

  • You must be 18 years of age.
  • You must be a Canadian citizen or permanent resident.
  • You must occupy the property as your principal residence.
  • You cannot have owned a home, or a stake in a home, anywhere in the world, at any time.

First Time Home Buyer Incentive

The Government of Canada has created this incentive to support first time home buyers by reducing your monthly mortgage payments. The program offers 5 - 10% of the home’s purchase price to put toward a down payment. This addition to your down payment lowers your mortgage carrying costs, making home ownership more affordable. The 5-10% you receive is an interest free loan and must be paid back once you sell your home or within 25 years; whichever comes first. The amount you pay back is determined by the appreciation of your home. 

For example: if you purchase a home for 300,000 and receive 5% ($15,000) and then when you sell your home it is worth 400,000 you would pay the government back 5% of the 400,000 ($20,000)


Criteria To Be Eligible

  • you or your partner are a first-time homebuyer
  • your total annual qualifying income doesn’t exceed $120,000
  • your total borrowing is no more than 4 times your qualifying income
  • you meet the minimum down payment requirements 
  • you are a Canadian citizen, permanent resident or non-permanent resident authorized to work in Canada

RRSP Home Buyers Plan

First time home buyers are now able to withdraw up to $35,000 tax-free from their registered retirement savings plan (RRSP) to buy or build a home. This withdrawal has no tax taken away from it which allows you to save much more for your down payment than if you were drawing from a chequing account. Keep in mind the amount you choose to withdraw must be paid back within 15 years. 


Criteria To Be Eligible

  • You must be a resident of Canada at the time of withdrawal.
  • You must be the owner of the RRSP(s) 
  • Your RRSP contributions must have stayed in the RRSP for at least 90 days before withdrawal.
  • Neither you nor your spouse/common-law partner can have owned the relevant home for more than 30 days.
  • Neither you nor your spouse/common-law partner can have owned another home in the last four years.

If you have a disability, the last requirement is waived. Additional requirements may apply in special cases.

CMHC Resources

Buying A Home Step-By-Step

Buying A Home Step-By-Step

Buying A Home Step-By-Step

Buying a home can often be a long process with many steps. Make sure you are covering all the bases with this simple step-by-step created by CMHC

Find out more

Newcomers

Buying A Home Step-By-Step

Buying A Home Step-By-Step

Are you new to Canada and not sure where to begin when buying a home? Check out this great resource on the CMHC website to help you hunt for houses for sale in London

Find out more

First Time Home Buyer

Buying A Home Step-By-Step

First Time Home Buyer

Take advantage of the CMHC first-time home buyer incentive. Find everything you need to know on their website

Find out more

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