Do you know all the government programs, tax incentives and grants available to homeowners? There are actually quite a few, and the REALTOR.ca Living Room team recently went over what’s available in a recent article. Here are the highlights from their research that would apply to Ottawa-area homeowners.
Home Buyers’ Amount
The Home Buyers’ Amount—also known as the First-Time Home Buyers’ Tax Credit—is available to first-time home buyers who acquire a qualifying home, which includes:
- single-family and detached homes;
- townhomes;
- mobile homes;
- condos;
- apartments in duplexes, triplexes and fourplexes; and
- apartment buildings.
Eligible buyers can receive a tax credit of up to $1,500, and in order to qualify, buyers must simply fill out their annual tax return.
There are some exemptions, however. Canadians are not eligible for the credit if they’ve lived in another home owned by themselves, a spouse, or a common-law partner in the year of acquisition or any of the four preceding years.
Learn more about the Home Buyers’ Amount.
GST/HST New Housing Rebate
The GST/HST new housing rebate is available to Canadians who purchased a new primary place of residence, including housing on leased land or shares in a cooperative housing complex. The rebate also applies to those who constructed or renovated a property for use as a primary place of residence. There are also some cases in which buyers of mobile and floating homes may be eligible for the rebate.
Eligible Canadians can apply for the GST/HST new housing rebate in order to recover a portion of the GST or the federal part of the HST paid. Supporting documentation, such as invoices, may be required in combination with a GST/HST new housing rebate application.
Learn more about the GST/HST new housing rebate.
Home Buyers’ Plan
The Home Buyers’ Plan allows for applicants to withdraw funds from a Registered Retirement Savings Plans (RRSP) to help with the purchase or construction of a home for themselves or for a related person with a disability. Qualifying homes include:
- single-family and detached homes;
- townhomes;
- mobile homes;
- condos;
- apartments in duplexes, triplexes and fourplexes; and
- apartment buildings.
The withdrawal limit is set at $35,000 and withdrawn funds must be paid back within a 15-year period under the program. The withdrawing party or parties must be considered a first-time home buyer, must occupy the home as a principal residence within one year after buying or building it, and must be the owners of the RRSP account or accounts.
Learn more about the Home Buyers’ Plan.
Multigenerational Home Renovation Tax Credit
The Multigenerational Home Renovation Tax Credit is available for families interested in constructing a secondary unit on their primary property. Under the credit, eligible homeowners can claim 15% on certain renovation expenses up to $50,000, for a maximum claim of $7,500.
However, there are some caveats. The secondary residence must be intended for seniors over the age of 65 or adults over the age of 18 who are eligible for the Disability Tax Credit. The unit must be a self-contained dwelling unit with a private entrance, kitchen, bathroom facilities, and sleeping area, and in most cases, the unit must be inhabited within 12 months after the renovation is completed. The credit can be claimed on your T1 income tax and benefit return for the renovation period taxation year.
Learn more about the Multigenerational Home Renovation Tax Credit.
Home Accessibility Tax Credit
The Home Accessibility Tax Credit is a non-refundable tax credit to help with the financial investment required to renovate or alternate a dwelling for an eligible individual to make it more accessible. Eligible individuals include those claiming the Disability Tax Credit and those who are 65 years of age or older at the end of a tax year. Those considered eligible can claim up to $10,000 in expenses. The credit can also be claimed by a person supporting an eligible individual, and in order to qualify, buyers must simply fill out their annual tax return.
Learn more about the Home Accessibility Tax Credit.
Provincial tax credits available to Canadian homeowners
In addition to the federal tax credits available to homeowners mentioned above, here is what’s available for Ontario residents.
- Northern Ontario energy credit
- Ontario energy and property tax credit
- Ontario senior homeowners’ property tax grant
- Ontario seniors’ home safety tax credit
Still have questions?
My team and I have been helping Ottawa residents for years in making sure their next move goes as smoothly as possible. From just-looking, to seasoned homeowner, we offer a refreshing, award-winning and client-centred approach.
Feel free to call us at 613-620-3870 or email me at su*@du****.ca if you want to chat more about financial preparation and what type of grants/incentives might be available.
