The Home Buyers Plan allows first-time home buyers in Quebe to withdraw up to $25,000 PER BUYER, from an RRSP to purchase a home without having to pay tax on the withdrawal. The federal government recently increased the maximum amount to give additional access to their registered retirement savings plans (RRSP’s) for home purchases.
Remember, the $25,000 per buyer does not HAVE to be used solely for down payment – it can be used for:
- Closing costs
- Paying off some debt
- Moving expenses
- or even a vacation to celebrate!
You qualify if:
- You or your spouse have not owned and occupied a home as your principal residence in the preceding 4 years, or
- You are buying or building a home for a disabled person who is related to you
Click on this link for more information on the Home Buyers Plan.
Through Canada’s Economic Action Plan, the federal government has introduced a First-Time Home Buyers’ Tax Credit (HBTC) to help with the purchase of a first home. This will assist first-time homebuyers with the costs associated with the purchase of a home, such as legal fees, disbursements and land transfer taxes. The HBTC amount will apply to qualifying homes purchased after January 27, 2016, and will provide up to $1750 in a Tax Credit. Click on this link for more information on the First Time Home Buyers Tax Credit.
Quebec Land Transfer Tax: $2,000
Quebec Welcome Tax is a provincial tax payable by the purchaser of a property. Therefore, if you purchase a property or land you are responsible for paying Land Tax to the Province at the time the transaction closes. First Time Homebuyers receive a reduction of up to $2,000.00 on Quebec Wlecome Tax.
If you found this useful, please forward onto any other friends, family or colleagues you know that might also be thinking of purchasing their first home and would benefit from being informed with this information. You can also check out the webinar on First Time Home Buyer Incentives and How to Claim them.