The Homebuyers Plan allows withdrawals of up to $25,000 per person from an RRSP to provide down payment or renovation funds for housing. This plan was created after lobbying from the Canadian Real Estate Association (CREA) was acted upon by the Federal Government and has been instrumental at getting several generations of homeowners established in their own private residence. http://www.servicecanada.gc.ca/eng/goc/home_buyers_plan.shtml

In recent years, the advent of the TFSA (Tax free savings account) also provides a similar opportunity without tax implications. http://www.cra-arc.gc.ca/tx/rgstrd/tfsa-celi/menu-eng.html

There is a onetime Federal Tax credit for first time buyers called the Home Buyer Tax Credit (HBTC) which is a $5,000 tax credit brought in during 2009.  http://www.cra-arc.gc.ca/hbtc/

There are several other programs worth checking out at the Federal level, these include:

The Emergency Repairs program

The Home Adaptation for Senior Independence Program

The Residential Rehabilitation Assistance Program for persons with disabilities. 

Links to these programs can be found at: http://www.cmhc-schl.gc.ca/en/co/prfinas/index.cfm

Two formerly popular Federal programs for Home Renovation Tax Credit and Energy Retrofit have unfortunately ended.

Saving for a home is challenge enough and the closing costs typically run 2%-2.5% of the home purchase price, on top of the down payment required, so the Ontario Government provides some relief for first time buyers with a rebate of up to $2,000 from Land Transfer Tax normally due the government upon transfer of ownership and registration of the property.  This amount covers the tax normally due on the first $227,500 of home value.  Most lawyers handle this tax reduction at the time of registering the property.  Check the link and discuss with your lawyer, if you have any questions about whether you qualify. http://www.fin.gov.on.ca/en/refund/newhome/index.html

It can also be claimed as a refund, provided this is done within 18 months of taking possession of the property.  (Nov 29, 2012)

The Ontario Government offers a number of tax credits for seniors.  One is the Healthy Homes Renovation Tax Credit which provides for up to $1,500 tax credit (based on a maximum of $10,000 spent) to modify a home to accommodate aging requirements such as safety or accessibility. There is also another program which provides support to homeowners with a senior living with them which can also be up to $1,500 on an annual basis.  To research these programs further please see:  http://www.ontario.ca/taxes-and-benefits/healthy-homes-renovation-tax-credit  date posted: Nov 29^th, 2012

There are also two other programs: The Ontario Energy and Property Tax Credit which helps seniors and low to moderate income non seniors with the sales tax they pay on energy and also with property taxes.  http://www.fin.gov.on.ca/en/credit/oeptc/index.html

The Ontario Homeowners Senior’s Property Tax Grant provides property tax assistance for seniors with low to moderate incomes (singles less than $50K and couples less than $60 adjusted net income) http://www.fin.gov.on.ca/en/credit/shptg/index.html

We are adding this page to our site (Nov 29, 2012) in an effort to list some of the many tax programs and credits relating to home buying or home ownership which will hopefully tweak a visitor to research further.  There are many great government programs at all levels which unfortunately go un-noticed by too many citizens who could be taking advantage of them.

This list is by no means complete and while we will do our best to keep it up to date, programs change and some are only temporary so there can be no guarantees everything here is current.  Also, we are not tax experts or lawyers-so please do your own research with the government organization involved &/or seek professional tax or legal advice, if necessary.

Gord McCormick, Broker of Record
Dawn Davey, Broker
Oasis Realty Brokerage
613-435-4692