Government incentives for first time buyers and

Government incentives for buyers who haven’t owned in at least 4 years


    Property Transfer Tax. (PTT) This tax is zero for first time buyers of properties with a price below $475,000 (pre-tax). If two people are buying equally and only one is a first time buyer, then you pay half the tax. This tax exemption applies only to people who have never owned personal real estate before.

  • Using RRSPs

    Any first time buyer or people who haven’t owned property in the past 4 years can borrow up to $25,000 tax free from their RRSP. If two people are buying and one has owned in the past 4 years and the other hasn’t, then the one that hasn’t owned can still use their RRSP funds to buy. These funds must be repaid to your RRSP within 15 years. See your lender for details.

  • $750 TAX CREDIT

    First Time Home Buyers Tax Credit (HBTC). This is a tax credit (cash!) of $750 for both first time buyers and buyers who have not owned in the past 4 years. With HBTC if two people are buying, neither may have owned in the past 4 years. To get this tax credit you must be earning enough income to be paying federal income tax.

    (To get this $750 credit, at tax time enter $5,000 on line 369 of Schedule 1 of your personal tax return. The claim can be split between you and your spouse or common-law partner.)