It is very evident that its getting more and more difficult for first time buyers in the Greater Toronto Area to embark upon buying what will be their first home in what most experts consider to be hot housing market.
As a homeowner, and a realtor, I know that home ownership is part of a Canadian dream. The rapidly increasing prices in the market, along with a number of mortgage rule changes over the past couple of years has made it more challenging for first time home buyers to realize their dream of owning a home.
Thanks to the provincial government, a bit of relief has finally arrived for this group. Effective January 1st, 2017, Ontario has doubled the land transfer tax rebate for first-time home buyers from $2,000 to $4,000. That means that a first-time home buyer will pay no provincial tax on first $368,000 of their purchase price. This of course only sizes up to be a small help in the grand scheme of things.
So, here is how it works. You qualify if:
- If you are at least 18 years of age,
- you and your spouse are first time home buyers,
- the home that you purchase will be your principle residence
- you are a Canadian Citizen or permanent resident
- You home closes effective Jan 31st, 2017 or later.