In Canada, there are many tax benefits available for Canadians beginning their adventure into homeownership. It’d take us a long time to write about all of them, so if you’re interested in learning about other tax benefits, we recommend coming into Source Mortgage to talk with one of our experts! In the meantime, here are a few that all Canadian homebuyers (and homeowners) should know about.
Since 2009, first-time homebuyers (which includes anyone who hasn’t owned a home in the last five years) have been benefiting from this non-refundable tax credit. This credit can be claimed by you, your spouse, or both of you, but cannot exceed a combined maximum credit of $750. If you’re buying your first home or haven’t owned your own place for the better half of a decade, remember to take advantage of this tax credit!
This tax benefit allows Canadians to take a 15 year loan from themselves. The homebuyer and their spouse can each draw $25,000 (for a combined maximum of $50,000) from their RRSPs in order to buy or build their first home. The loan is slowly paid back into the RRSPs over the next decade and a half, and 1/15 of the loan is due each year. However, as long as payments are made punctually, this loan from yourself is interest and tax free.
As with the first-time homebuyer tax break, Canadians who have owned a home in the past can qualify for the Home Buyer Plan. In this case, they may not have owned a home in the last four years.
Disabilities can be incredibly costly. Anyone who utilizes a wheelchair knows there’s a lot more to making a home disability-friendly than just adding a ramp. Counter tops in the kitchen and bathrooms must be lower down, some flooring types are difficult to move around on, the list goes on. Homeowners who are blind will have a completely separate list of requirements for their home. Fortunately, much of the cost to make your home more accessible can be claimed as required expenses. Medical reimbursements have special rules though, so you may want to speak with a tax expert first.
Canadians building and buying homes is good for the economy, so it makes sense that the government offers incentives to citizens hoping to find their first house. If you’re interested in learning more about the different rewards and benefits offered to Canadian homeowners, book an appointment with one of our mortgage experts today!
Source was absolutely great to work with - went above and beyond to help us get everything done when buying our new home. Highly recommended!! Chad and Jenelle Richards Jan 09 2013
Chad and Jenelle Richards
Added January 23rd 2013
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