Skibadee
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- Thread starter Skibadee
- Start date
sup2009
New Member
If this is the program you are referring to you will have to wait. For the other programs I believe your solicitors may claim for an immediate refund at the time of registration.
2009 FIRST-TIME HOME BUYERS' TAX CREDIT
Program
First-time home buyers who close a purchase AFTER January 27, 2009 may be eligible for at 15 percent income tax credit for closing costs.
Details
To assist first-time home buyers with the costs related to the purchase of a home.
The First-Time Home Buyers' Credit (FTHBC) provides a 15 percent credit on a maximum of $5,000 of home purchase costs (e.g. legal fees, land transfer taxes, etc.), meaning maximum tax relief of $750.
Applicable to first-time buyers purchasing a home closing after January 27, 2009.
The FTHBC is claimable for the taxation year in which the home is acquired.
An individual will be considered a first-time home buyer if neither the individual nor the individual's spouse or common-law partner owned and lived in another home in the calendar year of the home purchase or in any of the four preceding calendar years.
2009 FIRST-TIME HOME BUYERS' TAX CREDIT
Program
First-time home buyers who close a purchase AFTER January 27, 2009 may be eligible for at 15 percent income tax credit for closing costs.
Details
To assist first-time home buyers with the costs related to the purchase of a home.
The First-Time Home Buyers' Credit (FTHBC) provides a 15 percent credit on a maximum of $5,000 of home purchase costs (e.g. legal fees, land transfer taxes, etc.), meaning maximum tax relief of $750.
Applicable to first-time buyers purchasing a home closing after January 27, 2009.
The FTHBC is claimable for the taxation year in which the home is acquired.
An individual will be considered a first-time home buyer if neither the individual nor the individual's spouse or common-law partner owned and lived in another home in the calendar year of the home purchase or in any of the four preceding calendar years.
slowtyper
New Member
If I am a first time home buyer but my mortgage is cosigned by my parents (who have a home), are we still eligible for these incentives?
simuls
Senior Member
The mortgage is just a loan and is separate from the title. If you're the only one on the title, then you're aces.
sup2009
New Member
Simuls is correct.
Perhaps a Real Estate Lawyer can correct me if I am wrong, but you will also get part of the First time home buyer credit if you purchase a home with someone who is not a first time home buyer.
For example. I had a client who was a first time home buyer but his girlfriend already owned an interest in another home(i.e. not a first time home buyer). To make a long story short, my client was able to claim the credits for being a first time home buyer while his girlfriend did not qualify.
Just explain it to your lawyer ahead of time and he/she will take care of the rest for you.
Perhaps a Real Estate Lawyer can correct me if I am wrong, but you will also get part of the First time home buyer credit if you purchase a home with someone who is not a first time home buyer.
For example. I had a client who was a first time home buyer but his girlfriend already owned an interest in another home(i.e. not a first time home buyer). To make a long story short, my client was able to claim the credits for being a first time home buyer while his girlfriend did not qualify.
Just explain it to your lawyer ahead of time and he/she will take care of the rest for you.
Skibadee
New Member
What about the land transfer tax in Toronto
From what I understand FTHB get a break or a partial break on having to pay this
Does this mean that you pay the tax at the time of closing and get it back at a later time or do they just credit you on the spot and make you pay the difference?
From what I understand FTHB get a break or a partial break on having to pay this
Does this mean that you pay the tax at the time of closing and get it back at a later time or do they just credit you on the spot and make you pay the difference?
sup2009
New Member
I got this from the Toronto Real Estate Board
First-time buyers of new and re-sale homes are eligible to receive rebates of the provincial and Toronto land transfer taxes. The maximum provincial land transfer tax (LTT) rebate for first-time buyers is $2,000 and the maximum Toronto LTT rebate for first time buyers is $3,725. A FULL rebate of the Toronto land transfer tax is also available for ALL buyers who entered into Agreements of Purchase and Sale prior to December 31, 2007.
Details
Provincial LTT
Provincial LTT is payable anywhere in Ontario (including Toronto)
Maximum provincial LTT first-time buyer rebate is $2,000 (equivalent to the provincial LTT payable on a $227,500 property).
For RESALE homes, the provincial rebate applies only to first-time buyers who entered into Agreements of Purchase and Sale AFTER December 13, 2007.
First-time buyers of NEWLY CONSTRUCTED HOMES are eligible for the provincial rebate even if they entered into Agreements of Purchase and Sale prior to December 13, 2007.
The provincial LTT for residential properties is calculated as follows (An easy-to-use calculator is available at www.NoHomeBuyingTax.com):
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 $250,000, plus
1.5% of the amount of the purchase price between $250,000 and $400,000, plus
2% of the amount of the purchase price above $400,000
Toronto LTT
Toronto LTT is payable only for properties in the City of Toronto.
Maximum Toronto LTT first-time buyer rebate is $3,725 (equivalent to the Toronto LTT payable on a $400,000 property).
ANY purchaser who entered into an Agreement of Purchase and Sale prior to
December 31, 2007 is eligible for a FULL rebate of the Toronto LTT.
Toronto LTT rebates are in addition to any provincial LTT rebate that the buyer qualifies for.
The Toronto LTT for residential properties is calculated as follows (An easy-to-use calculator is available at www.NoHomeBuyingTax.com):
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
First-Time Buyer Eligibility
To be eligible as a first-time buyer for the provincial LTT rebate and/or Toronto LTT rebate,
The purchaser must be at least 18 years of age.
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.
The purchaser cannot have previously owned a home, or had any ownership
interest in a home, anywhere in the world, at any time.
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.
How Do I Apply? from http://www.rev.gov.on.ca/english/refund/newhome/
Qualifying taxpayers may claim an immediate refund at time of registration in one of two ways:
If registering electronically, by completing the required statements under the "explanation" tab of the electronic affidavit.
If registering on paper, by filing an Ontario Land Transfer Tax Refund Affidavit For First-Time Purchasers of Eligible Homes at the Land Registry Office
First-time buyers of new and re-sale homes are eligible to receive rebates of the provincial and Toronto land transfer taxes. The maximum provincial land transfer tax (LTT) rebate for first-time buyers is $2,000 and the maximum Toronto LTT rebate for first time buyers is $3,725. A FULL rebate of the Toronto land transfer tax is also available for ALL buyers who entered into Agreements of Purchase and Sale prior to December 31, 2007.
Details
Provincial LTT
Provincial LTT is payable anywhere in Ontario (including Toronto)
Maximum provincial LTT first-time buyer rebate is $2,000 (equivalent to the provincial LTT payable on a $227,500 property).
For RESALE homes, the provincial rebate applies only to first-time buyers who entered into Agreements of Purchase and Sale AFTER December 13, 2007.
First-time buyers of NEWLY CONSTRUCTED HOMES are eligible for the provincial rebate even if they entered into Agreements of Purchase and Sale prior to December 13, 2007.
The provincial LTT for residential properties is calculated as follows (An easy-to-use calculator is available at www.NoHomeBuyingTax.com):
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 $250,000, plus
1.5% of the amount of the purchase price between $250,000 and $400,000, plus
2% of the amount of the purchase price above $400,000
Toronto LTT
Toronto LTT is payable only for properties in the City of Toronto.
Maximum Toronto LTT first-time buyer rebate is $3,725 (equivalent to the Toronto LTT payable on a $400,000 property).
ANY purchaser who entered into an Agreement of Purchase and Sale prior to
December 31, 2007 is eligible for a FULL rebate of the Toronto LTT.
Toronto LTT rebates are in addition to any provincial LTT rebate that the buyer qualifies for.
The Toronto LTT for residential properties is calculated as follows (An easy-to-use calculator is available at www.NoHomeBuyingTax.com):
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
First-Time Buyer Eligibility
To be eligible as a first-time buyer for the provincial LTT rebate and/or Toronto LTT rebate,
The purchaser must be at least 18 years of age.
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.
The purchaser cannot have previously owned a home, or had any ownership
interest in a home, anywhere in the world, at any time.
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.
How Do I Apply? from http://www.rev.gov.on.ca/english/refund/newhome/
Qualifying taxpayers may claim an immediate refund at time of registration in one of two ways:
If registering electronically, by completing the required statements under the "explanation" tab of the electronic affidavit.
If registering on paper, by filing an Ontario Land Transfer Tax Refund Affidavit For First-Time Purchasers of Eligible Homes at the Land Registry Office
mir118
New Member
re: first time home
What if your closing date was January 7th, 2009. Does this mean I can not apply??
What if your closing date was January 7th, 2009. Does this mean I can not apply??
ABuyer
New Member
I have always been curious, how does the city or the province for that matter know if this is your first house. It is not like they can find out if you owned something "anywhere in the world". They don't even talk to each other, even one department within the city does not talk to the other department, so how would the city know someone has owned something in Ontario. This has very negatively affected my situation, because I do own an investment property in Ontario which I am trying to sell with a loss since the market in that area is very bad, but not only do I not make any money on the house but I also loose this privilege. From the CRA prospective I am still first time home buyer so I can use the RRSP home buyer plan, but from city and province I am not, so I can not get the credit. Could some one please shed some light on this? Am I correct to think that a) I am not eligible b) if I just indicate that I am a first time buyer, how does the city/province find out and what are the ramifications