Buying your first home? Here are some tax tips.
There’s nothing quite like the feeling of buying your first home. It’s a big step to take… and it comes with some big expenses!
Did you know that you may be entitled to a bit of relief from some of the costs you’re facing? The government offers certain tax breaks to first-time home buyers, and if you’re eligible, you could end up saving a nice little chunk of money.
One of these tax breaks is the Home Buyers’ Plan (HBP), which gives you the opportunity to withdraw up to $25,000 from your RSP for the purchase of your first home without having to pay withholding tax on the withdrawal.
There is also a First-time Home Buyers’ Tax Credit (HBTC), which is a $750 non-refundable tax credit you can claim in the year you buy your first home.
Also, depending on where you live, you may qualify for a Land Transfer Tax (LTT) Refund.
To learn more about each of these, read this month’s Interest Rate Monitor at www.ingdirect.ca/monitor
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