Government Programs
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| | | |  | | Government Programs for Home Buyers and Property Owners A home is usually the single largest investment that most people make in their lives. Achieving your dream can be made easier by taking advantage of various Government Programs for home buyers and property owners. Some of the programs are targeted to first-time buyers, while others apply more generally. Other programs benefit those in the industrial, commercial and multi-unit property market. Your REALTOR can provide information on these programs and help you to determine your eligibility.
Government Programs for Home Buyers
> First-Time Home Buyers’ Tax Credit (pdf)
> CMHC Purchase Plus Improvements Program
> RRSP Home Buyers' Plan (pdf)
> 5 per cent Down Payment Program
> GST New Housing Rebate
> Land Transfer Tax Rebates
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CMHC Purchase Plus Improvements
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Program Canada Mortgage and Housing Corporation (CMHC) insured mortgage loans are available to cover the purchase price of a home as well as an amount to pay for immediate major renovations or other improvements that the purchaser may wish to make to the property.
This option eliminates the need to obtain secondary financing after the purchase to
pay for improvements. The homebuyer obtains a single first mortgage, makes a single mortgage payment, and benefits from first mortgage interest rates.
Details
The insured loan will be based on the lower of:
The purchase price plus the actual cost of improvements, or,
The “as improved” market value. Prior to approval, CMHC will determine the market value of the property after renovations/ improvements. The lending value will not exceed the market value of the property after renovations/ improvements. Applicants must have the following:
A minimum of 5% down payment of total cost (purchase price plus renovations/ improvements).
Cost estimates for renovations/improvements.
Qualifications to obtain a CMHCinsured loan through an approved lender.
For more information call CMHC at (416) 221-2642 or www.cmhc.ca. | EXAMPLE: | Purchase Price | $100,000 | Renovations/improvements costs | $25,000 | Total cost | $125,000 | | | Lending Value | $125,000 | Maximum Mortgage (95%) | $118,750 | Mimimum 5% down payment | $6,250
| GST New Housing Rebate Program
You may be eligible to claim a rebate for a part of the GST you pay on the purchase price or cost of building your home if:
- you buy a new or substantially renovated home (including the land or if you lease the land) from a builder;
- you buy a new mobile home (including a modular home) or a floating home from a builder or vendor;
- you buy a share of capital stock of a co-operative housing corporation;
- you construct or substantially renovate your own home, or carry out
a major addition (or hire another person to do so); or
- your home is destroyed in a fire and is subsequently rebuilt.
Details
- Resale homes are exempt from the GST.
- New homes are subject to the GST. New home buyers can apply for a 36% rebate of the GST applicable to the purchase price to a maximum of $6,300 for homes costing $350,000 or less before GST.
- For new homes priced between $350,000 and $450,000 before GST, the GST rebate would be reduced proportionately.
- New homes priced $450,000 before GST or higher would not receive a rebate.
NOTE: In the Greater Toronto Area, most builders include the GST in the price of the house, and any rebate would be assignable to the builder as they would be absorbing the net GST cost. |
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