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Are there any incentives or tax breaks for buying a home?
The Canada Revenue Agency (CRA) has a special tax shelter for certain homebuyers.
The CRA offers the Homebuyers' Plan (HBP). If you are eligible, you can withdraw up to $25,000 from your registered retirement savings plans (RRSPs) to buy or build your home. Your spouse can also withdraw up to $25,000, making the total amount $50,000.
The amount is not included in your taxable income for that year. You must repay the amount within 15 years, usually in annual installments.
Am I eligible?
Visit CRA's website to find out all the conditions to participate in the HBP.
For More Information
- Homebuyers' Plan (HBP) - An online fact sheet that explains the conditions for participating in the HBP, how the money must be repaid and other rules.
- Buying Your First Home in Canada: What Newcomers Need to Know - A brochure with information about the process of buying a home in Canada. From the CMHC. Available in many languages.
- Buying a House - Tips and information about buying a new home from the Ontario Securities Commission.
- Homebuying Step-by-Step - An online guide that explains many topics, such as cost, finding the right home, and home repair and maintenance.
- Making an Offer and Closing the Deal - This brochure has tips on how to make an offer, close the deal and buy your first home in Canada. It is from Canada Mortgage and Housing Corporation. It is available in many languages.
- Ontario Tax Credits and Benefits - Learn about the different tax credits and benefits you can get to help you with living costs when you file your income tax return. From the Ministry of Finance.
March 29, 2016