First Home Buyer Incentives in Budget 2022
Published on 29 August 2022, 07:22:56 AM
First home buyer incentives in Canada’s 2022 federal budget take the edge off coming up with a downpayment, and make finding housing more fair. Getting that first home may feel perilous, but every bit helps.
Sky high prices in early 2022 capped the housing market at anyone with a minimum of $60,000 down. Even at that, first time home buyer incentives for Toronto residents are more welcome than ever.
After interest rates went north again in April, you have to wonder, can you really afford the monthly payments?
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Home Buyers’ Bill of Rights
We reported home buyers’ rights were on the table in November 2021. It’s finally in the budget, with a commitment to consult on and “bring forward” a national plan to end blind bidding. The bill would enshrine the legal right to a professional home inspection, and include past sales prices in property title searches. (We say “would enshrine” because budget announcements are only proposals until signed into law by Parliament. Stay tuned for those dates.) Get more on the home buyers’ bill of rights.
Leveling the Playing Field for First Time Home Buyers
The bill of rights dovetails with a proposed two-year ban on buying non-recreational residential property in Canada for foreign buyers and foreign commercial enterprises. The ban would apply to anyone who is not a Canadian citizen, permanent resident, or international student visa holder.
You could be excused if you divorce, have a job or new child, but look for new taxes on flipping homes in January 2023. Canadians will be required to declare profits on home sales as business income if they sell a residential property less than 12 months after buying.
First Time Home Buyer Incentives to Double Tax Credits
The budget would double the First-Time Home Buyers’ Tax Credit amount to $10,000. The credit gives home buyers $1,500 in direct support for homes bought on or after January 1, 2022.
Extending the First-Time Home Buyer Incentive Program
Federal shared equity mortgages under its pre-2022 first home buyer incentives are extended to March 31, 2025. Depending where you buy, maximum eligible home prices under this initiative are 4 to 4.5 times your income. The program may become more flexible in future for single parent households. See how it works.
Using RRSPs for mortgages.
Savings for First Time Home Buyer Down Payments
Nothing says first home buyer incentives like a tax-free savings account. It’s similar to the TFSA you are already used to paying into. The new Tax-Free First Home Savings Account will let you contribute up to $40,000, with no tax consequences when you withdraw your money to buy a home. Contributions are tax-deductible. As the federal government puts it, “Tax-free in, tax-free out.”
What every first home buyer should know.
Benefits for First Time Home Buyers in Ontario
First time home buyers in Ontario get Toronto and/or provincial refunds for land transfer taxes (LTT) for principal residences they own and occupy. Buyers get a provincial LLT refund of $4,000 for homes priced over $368,000, and pay no LTT for homes under that price. Toronto home buyers qualify for an additional municipal land transfer tax of up to $4,475. Read about the provincial rebate.
Borrowing down payments when buying a first home in Ontario.
Qualifying for First Time Home Buyer Incentives
Who qualifies for first home buyer incentives in Canada depends on the program. Generally, you (and a spouse) could qualify if you are:
- a Canadian citizen, permanent resident, or possibly non-permanent resident authorized to work in Canada
- a low to moderate income earner (for example, for the pre-2022 First-Time Home Buyer Incentive, less than $120,000, or up to $150,000 in Toronto, Vancouver, and Victoria)
- with a minimum 5% to 10% down payment.
Your debts to income must satisfy mortgage lending bars. Lenders also look at whether you have ever owned in past and, if so, how long ago. Since lending requirements for first home buyer incentives vary, investigate before you apply. See first time home buyer incentives predating the April 2022 federal budget.
Why You Need a Real Estate Lawyer
Axess Law makes buying your first home less intimidating. Our flat fee lawyers bill you for only the legal services you absolutely need to buy a new build or resale home in Ontario. You can visit lawyers in person in Greater Toronto Area or Ottawa, or video conference with a remote real estate lawyer online anywhere in Ontario.
Why do I need a lawyer to discharge a mortgage in Ontario?
Axess Law goes through your agreement of purchase and sale (offer to purchase) for essential clauses that protect your buyer’s right to cancel, and right to a professional home inspection. We amend agreements if they fall short, and advise you what to do if the seller pressures you to commit to a final contract before you are ready.
Once your good faith deposit is in, Axess Law’s experienced legal team searches title to your property to transfer it to your name, and add others to title if you desire it. Your mortgage lender is contacted to finalize legal documents you need to finance your new home. When the signing is done, Axess Law hands you the keys to your new home.
What a real estate lawyer does for you.
Access Lawyers Remotely Anywhere You Are
If this is your first time using virtual videoconferencing for legal services, our remote real estate lawyers show you just how convenient it is. You can sign mortgage loan and offer to purchase documents online. We witness your signature, and send you final copies for your records.
Any compatible home computer, laptop, tablet, or mobile device can be used. Our virtual lawyer services are secure and confidential.
How virtual real estate lawyer services work.
Affordable Real Estate Lawyers, Anywhere You Are
Access lawyers for less in Greater Toronto Area, Ottawa, or anywhere in Ontario when you buy, sell, or transfer property. Axess Law’s flat fee real estate lawyers are affordable, and our rates are all inclusive (excluding taxes, disbursements, and third-party charges). Axess Law offers you only the legal services you absolutely need. Your final invoice includes no surprises or hidden charges. Your itemized statement of adjustments is explained when we deliver it, and we answer any questions you have about it.
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Make Quick Phone or Online Appointments
Make appointments day or evening, 7 days a week, with our convenient, easy to use online booking form. We have flexible appointment times, with onsite parking and major transit access nearby. Call our 1-877-402-4277 lawyer line, 647-479-0118 in Greater Toronto Area, for in-person appointments in the GTA or Ottawa, or drop by any of our locations. If it’s more convenient for you, drop by any Axess Law office to schedule appointments.
