Rebates Available to

First Time Buyers

Of Real Estate

For more information, please contact:

The RealEstateTalkShow
416-366-9090
info@realestatetalkshow.ca
www.realestatetalkshow.ca

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 Home Buyers Plan (HBP)
The Home Buyers' Plan (HBP) is a program that allows you to withdraw up to $25,000 (after January 27,
2009), from your registered retirement savings plan (RRSPs) to buy or build a qualifying home for
yourself or for a related person with a disability .

Conditions for participating in the HBP:

To participate in the HBP, ONE of the following conditions must apply:

1. You are withdrawing funds to buy or build a home for yourself as a first-time home buyer.

or

2. You are withdrawing funds to buy or build a home for a person with a disability .

In addition, ALL of the following conditions must apply:

You must enter into a written agreement (Offer of purchase) to buy or build a qualifying
home. The agreement may be with a builder or contractor, or with a realtor or private seller.
Obtaining a pre-approved mortgage does not satisfy this condition.

You intend to occupy the qualifying home as your principal place of residence. Your
repayable HBP balance on January 1 of the year of the withdrawal is zero.

Neither you nor your spouse or common-law partner owns the qualifying home more than
30 days before the withdrawal.

You are a resident of Canada.

You buy or build the qualifying home before October 1 of the year after the year of
withdrawal.

You are responsible for making sure that all HBP conditions that apply to your situation are met.

For more detailed information, go to:

http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/rrsp-reer/hbp-rap/menu-eng.html

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 Toronto Land Transfer Tax
Rebate Program (TLTT)

Program

First-time home buyers who purchase a re-sale or newly constructed home will receive a rebate of the
Toronto Land Transfer Tax (TLTT).

Details

The City of Toronto provides a rebate of the TLTT to first-time home buyers of re-sale or newly
constructed homes.
The maximum TLTT rebate is $3,725 (equivalent to the TLTT payable on a $400,000 home).
According to the City of Toronto, eligibility rules for the TLTT first-time buyer rebate will mirror
provincial rules, as follows:
o The purchaser must be at least 18 years of age.
o The purchaser must occupy the home as his or her principal residence no later than nine
months after the date of the conveyance or disposition.
o The purchaser cannot have previously owned a home, or had any ownership interest in a
home, anywhere in the world, at any time.
o If the purchaser has a spouse, the spouse cannot have owned a home, or had any
ownership interest in a home, anywhere in the world while he or she was the purchaser's
spouse. If this is the case, NO refund is available to either spouse. Note: If a purchaser's
spouse owned an interest in a home BEFORE becoming the purchaser's spouse, but not
while the purchaser's spouse, the purchaser may be eligible for some rebate.

The tax is a percentage of value of the property based on a graduated scale:

0.5% of the amount of the purchase price up to and including $55,000, plus
1% of the amount of the purchase price between $55,000 and $400,000, plus
2% of the amount of the purchase price above $400,000

For additional information, contact the City of Toronto at 416-338-0338, or your lawyer.

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 Provincial Land Transfer Tax
Rebate Program (PLTT)
First-time home buyers who purchase a newly constructed home will receive a rebate of the Provincial
Land Transfer Tax (LTT). All other buyers will continue to pay the full applicable tax. The maximum
Provincial LTT rebate is $2,000.

Details

The 1996 Ontario Budget announced a special one-year provision to the Provincial LTT that was
renewed every year and is now a permanent program.
FIRST-TIME BUYERS who purchase a NEWLY CONSTRUCTED HOME will receive a rebate of
the Provincial LTT. All other buyers will continue to pay the full applicable tax.
The maximum rebate is $2000. If an individual owns less than 100% interest in the newly built
home, the amount of the rebate would be reduced and calculated according to the amount of
interest in the home.
A rebate of $2,000 is equivalent to the Provincial LTT payable on a purchase price of $227,500
(net of GST).
Only individuals who are at least 18 years of age, have not (or spouse) previously owned an
interest in a home anywhere qualify for the rebate.
Individuals who have received an Ontario Home Ownership Savings Plan (OHOSP) based refund
of the Provincial LTT do not qualify.
A real estate transfer tax is assessed on real property when ownership of the property is
transferred from one party to another. The Provincial Land Transfer Tax is a percentage of the
value of the property based on a graduated scale:
0.5% on amounts up to and including $55,000;
+1.0% on the amount exceeding $55,000 up to and including $250,000;
+1.5% on amounts above $250,000 up to and including $400,000 for residential /
+1.5% on the amount in excess of $250,000 for business properties;
+2.0% of the amount in excess of $400,000. [Residential only]

These four portions added up together total the Provincial LTT payable.
A simple formula is as follows:

**Purchase Price Calculation of LTT

$0 to $55,000 .005 x purchase price

$55,001 to $250,000 (.01 x purchase price) minus 275

$250,001 to $400,000 (residential) (.015 x purchase price) minus 1525

$250,001 plus (business)

$400,001 plus (residential only) (.02 x purchase price) minus 3525

** If the purchase price falls within this range, then apply the appropriate formula to the
purchase price. For example on a $200,000 property, the LTT calculation would be [(.01 x
$200,000) minus 275 = $1725].

For more information call the Ontario Finance Ministry at 1-800-263-7965, or your lawyer.

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 Home Buyers Tax Credit (HBTC)
1. What is the home buyers' tax credit (HBTC)?

For 2009 and subsequent years, the HBTC is a new non-refundable tax credit, based on an amount of
$5,000, for certain home buyers that acquire a qualifying home after January 27, 2009 (i.e., generally
means that the closing is after this date).

2. How is the new HBTC calculated?

The HBTC is calculated by multiplying the lowest personal income tax rate for the year (15% in 2009) by
$5,000. For 2009, the credit will be $750.

3. Am I eligible for the HBTC?

You will qualify for the HBTC if:

You or your spouse or common-law partner acquired a qualifying home; and

You did not live in another home owned by you or your spouse or common-law partner in the
year of acquisition or in any of the four preceding years.

If you are a person with a disability or are buying a house for a related person with a disability, you do
not have to be a first-time home buyer. However, the home must be acquired to enable the person with
the disability to live in a more accessible dwelling or in an environment better suited to the personal
needs and care of that person.

4. What is a qualifying home?

A qualifying home is a housing unit located in Canada acquired after January 27, 2009. This includes
existing homes and those being constructed. Single-family homes, semi-detached homes, townhouses,
mobile homes, condominium units, and apartments in duplexes, triplexes, fourplexes, or apartment
buildings all qualify. A share in a co-operative housing corporation that entitles you to possess, and gives
you an equity interest in, a housing unit located in Canada also qualifies. However, a share that only
provides you with a right to tenancy in the housing unit does not qualify.

Also, you must intend to occupy the home or you must intend that the related person with a disability
occupy the home as a principal place of residence no later than one year after it is acquired.

More info at: http://www.cra-arc.gc.ca/gncy/bdgt/2009/fqhbtc-eng.html

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