Buying and selling a home can be a challenging and stressful experience. At BRichards Consulting Ltd. we believe knowledge and awareness of the rebates and tax advantages available to new and existing homeowners can be helpful in your decision making process.
Rebates and refunds available to homeowners:
Available government rebate programs:
- ecoEnergy Retrofit homes (effective until to March 31, 2012)
Land transfer tax refund for new home buyers:
- Land transfer tax applies to all conveyances of land in Ontario. First-time homebuyers may be eligible for a refund of all or part of the tax payable. Qualifying taxpayers may claim an immediate refund at time of registration with the Ontario Land Transfer Office or be claimed after paying the land transfer tax by submitting a claim to the Ministry of Finance. Your real estate lawyer should assist you with this claim.
CHMC Green Home premium refund:
- Buying an energy-efficient home or making energy-saving renovations can offer big savings. A 10% CMHC mortgage loan insurance premium refund and extended amortization period without surcharge may be available when you use CMHC insured financing to purchase an energy-efficient home or make energy-saving renovations. The eligibility rules and application for the premium refund can be found at (https://www.cmhc-schl.gc.ca/en/co/moloin/moloin_021.cfm)
HST refund on new homes:
- The HST applies to newly constructed or substantially renovated homes, but does not apply to resale homes. Buyers of new homes will receive a rebate of the provincial portion of the HST up to $24,000 regardless of the price of the new home. The rebate is paid or credited to the purchaser by the builder.
Income Tax advantages to homeowners:
Whether you are a renter or homeowner, if eligible, you can claim certain tax credits on your Ontario income tax return. As part of the Ontario Trillium Benefit; low- to moderate-income individuals, 19 years of age and older, and families, including single parents, are able to claim the following tax credits (by filing Form ON-BEN):
- Ontario Sales Tax Credit (OSTC)
- Ontario energy and property tax credit (OEPTC)
- Northern Ontario energy credit (NOEC)
- Ontario senior homeowners property tax grant (OSHPTG)
First time homebuyers tax credit (HBTC):
- Eligible first time homebuyers can receive a $5,000 non-refundable HBTC towards a qualifying homes acquired after January 27, 2009 and provides up to $750 in federal tax relief.
Moving Expenses Deduction:
- You can deduct eligible moving expenses if you if you move and establish a new home to be employed or carry on a business at a new work location, or if you move to study courses as a student in full-time attendance at a university, college or other educational institution that offers courses at a post-secondary school level. To qualify, your new home must be at least 40 kilometres (by the shortest usual public route) closer to the new place of work or educational institution.
Please contact Bertram via email at: Bertram.Richards@brichardsconsulting.com or by phone: (416)-568-9243
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Government Grants and Tax Credits for Homebuyers Brichards Consulting
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