In continuation from our previous posts about updated mortgage rules, here are a list of government programs to help home buyers and home owners.
Disclaimer: With any tax related matters, such as rebate rules under Federal, Provincial or Municipal Law, we recommend that you consult with an experienced professional tax accountant in this subject matter.
The Home Buyers’ Plan
The Home Buyers’ Plan (HBP) is a program that allows you to withdraw from your registered retirement savings plans (RRSPs) to buy or build a qualifying home for yourself or for a specified disabled person. Currently the HBP withdrawal limit is $60,000.
GST/HST New Housing Rebate
As per the Canada Revenue Agency, a house can be eligible for the GST/HST and/or applicable provincial new housing rebate if it “includes a detached or semi-detached single-unit house, a duplex, a condominium unit, a townhouse, a unit in a co-operative housing corporation, a mobile home (including a modular home), and a floating home. It may also include the land around and underneath the house that is reasonably necessary for its use and enjoyment as a place of residence. This is generally up to one half hectare (1.23 acres) and may include nearby buildings such as a detached garage or shed.”
The Government of Canada has prepared a very detailed and informative web page, providing information about the CRA GST/HST housing rebate. Please visit their site to learn more.
New Mortgage Rules for Canadians
Increasing the $1 million price cap for insured mortgages to $1.5 million.
Expanding eligibility for 30-year mortgage amortizations to all first-time homebuyers and to all buyers of new builds.
First Home Savings Account (FHSA)
A first home savings account (FHSA) is a registered plan which allows you, if you are a first-time home buyer, to save to buy or build a qualifying first home tax-free (up to certain limits).
Canada Secondary Suite Loan Program
On December 10, 2024, the Government of Canada, announced “it will double the loan limit for the Canada Secondary Suite Loan Program to $80,000, and launch the program in early 2025. This will make it easier for homeowners to convert an unused basement into a rental apartment or a garage into a laneway home to increase density in our communities.”
“By doubling the loan limit from $40,000 to $80,000, more homeowners will be able to access the low-interest financing they need to add a secondary suite to their home. This will make it cheaper for homeowners to do so through 15-year loan terms at a low-interest rate of just 2 per cent.”
“In addition to the Secondary Suite Loan Program, homeowners will also be able to refinance with insured mortgages to help cover the cost of adding a secondary suite, starting January 15, 2025. Specifically, lenders and insurers will begin allowing mortgage refinancing of up to 90 per cent of the post-renovation value of their home up to $2 million, amortized over a period of up to 30 years. Homeowners will be able to make use of both the loan program and mortgage financing to help cover the cost of adding a secondary suite.”
Land Transfer Tax Rebates
When you buy land or an interest in land in Ontario, you pay land transfer tax. First-time homebuyers of an eligible home may be eligible for a refund of all or part of the tax.
Additionally, in Toronto, there is the Toronto Municipal Land Transfer Tax (MLTT) Rebate – you can visit the City of Toronto’s MLTT web site for more information.
When you purchase or gain an interest in a property, there are many ways you may qualify to reduce the amount of tax you need to pay.
Learn more below about the available programs and the types of transfer that may qualify for an exemption.
The First-Time Homebuyers’ Tax Credit is a provincial non-refundable income tax credit of up to $1,050 to eligible taxpayers on qualified homes.
You may be entitled to a tax credit if you were resident in Quebec on December 31 of the year covered by the claim (or on the day in that year you ceased to be resident in Canada).
New Brunswick – has several types of relief programs
Residential Property Tax Credit
Property Tax Allowance
Property Tax Deferral Program for Seniors
Nova Scotia’s First-Time Home Buyers Rebate is a rebate equivalent to 18.75 per cent of the provincial portion of the HST or 1.31 per cent of the purchase price of capital stock in a housing cooperative, up to $3,000, on newly built homes.
This program is for newly constructed homes only and does not include renovations or conversions from rentals to condominiums.
Real Property Transfer Tax that normally applies to the registration of a deed of conveyance in Prince Edward Island may be waived if the buyer, as specified on the deed, is a first-time home buyer.