First Time Home Buyers

First-Time Home Buyers Plan 

We understand how complicated buying your first home can be. Understanding Ontario’s HBP is a big part of making your first purchase. We have outlined the specifics of the program below.

• Eligible RRSP 

• 35k max

• Repayments begin in 2nd year of ownership (2,333 annual if 35k used)

• CRA provides a statement of account with your notice of assessments

First-Time Home Buyer Incentive

This incentive is a shared-equity mortgage with the Government of Canada. The specifics are:

• 5% or 10% for a first-time buyer’s purchase of a newly constructed home

• 5% for a first-time buyer’s purchase of a resale (existing) home

** “The homebuyer must repay the Incentive after 25 years, or when the property is sold, whichever comes first. The homebuyer can also repay the Incentive in full any time before, without a pre-payment penalty.”

First-Time Buyer Land Transfer Tax Refund

Beginning January 1, 2017, no land transfer tax would be payable by qualifying first‑time purchasers on the first $368,000 of the value of the consideration for eligible homes. First‑time purchasers of homes greater than $368,000 would receive a maximum refund of $4,000.

Sources :

https://www.cmhc-schl.gc.ca/en/nhs/first-time-home-buyer-incentive

https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/rrsps-related-plans/what-home-buyers-plan/participate-home-buyers-plan.html

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WAYNE FARROW

Over his 40 year career, Wayne has worked with hundreds of Canadian corporations to design and manage Retirement Savings Programs involving thousands of plan members.

His hands-on approach and involvement at the Plan Member level gives him a unique ability to see things through the eyes of all the stakeholders and most importantly, the Plan Member. 

He has literally been there, and done that, on the shop floor, not the 52nd floor. 

This experience has allowed him to simplify the plan design and management of retirement programs in such a way that the most important elements are clearly understood by both the Plan Sponsor, and the Plan Member. 

As he always says, “if you can’t explain it to an eight year old, then you don’t understand it.” 

You can contact Wayne at: wayne@farrowpension.ca