Two main advantages for buying a home as a first time buyer.
-Exemption from the Property Transfer Tax as long as the purchase is under $425,000. Anything from $450,000 or higher you must pay the full amount. Between $425,000 and $450,000. The amount payable on a new home purchase is 1% on the first $200,000 and 2% of the balance.
A first time buyer for this is someone whom has never owned a property, anywhere in the world, before.
-You can use up to $25,000 or your RSP’s tax free. You have 15 years to pay them back with the first year being a grace year. Of course you can pay them back right away as well.
And yes, this can be used for you and your spouse or whomever is considered a first time buyer on the application.
This RPS option does work as well if you’re buying a home and and haven’t held title to your name in 5+ years!
Christos Gitersos – Your Money Saving Mortgage Broker
christos@gitersos.com