How first-time homebuyers can save when purchasing a home

Taylor Bennett from Bennett Property Shop tells us how first-time home buyers could save tens of thousands of dollars.

It’s no easy feat to break into the housing market and for many first-time homebuyers, every penny counts. However, there are a few government rebates homebuyers can take advantage of to save on the big purchase.

Taylor Bennett, a realtor with the Bennett Property Shop, joined CTV Your Morning Ottawa on Thursday to speak about some of the rebates those buying their first home can use to save thousands of dollars.

Who qualifies as a first-time homebuyer?

While the answer to this question might seem straightforward, Bennett says it’s more than just people buying a home for the first time that qualify as a first-time home buyer.

As Bennett explains, to qualify for first-time home buyer rebates, you must not have owned a home in the past four years.

So, those who previously owned a home but haven’t for over four years can apply for these rebates.

Federal GST rebate

This federal rebate provides first-time homebuyers with a rebate on their General Sales Tax (GST) for homes up to $ 1 million.

As Bennett explains, this effectively gives homebuyers a five per cent rebate. For a home costing $600,000, that could save a buyer $30,000.

“It’s real cash in your pocket,” Bennett said.

With the rebate being capped at $1 million, the maximum rebate allowed is $50,000.

For homes between $1 million and $1.5 million, the rebate is offered at reduced rates. For homes at $1.5 million or more, there is no rebate.

For more information on the federal GST rebate, visit the Government of Canada’s website.

Ontario HST New Home Rebate

This rebate was proposed in October but has not yet been approved by the province. Should the legislation pass, Bennett says it will provide first time homebuyers purchasing a newly built home with a significant rebate.

“Should it be passed, you’re looking at an eight per cent reduction for this, which is a huge, huge reduction on there,” Bennett said.

As Bennett explains, on a $600,000 home, the buyer could save $48,000.

Similar to the Federal GST rebate, this rebate applies to homes under $1 million. For homes between $1 million and $1.5 million, the rebate is also offered at a reduced rate.

For more information the Ontario HST rebate, visit the Government of Ontario’s website.

Other tips for applying

Bennett says homebuyers should keep records of their purchase, as they’ll need them to file for the rebates. He also recommends keeping the paperwork on hand even after the rebate has been issued, in case the Canada Revenue Agency ever needs to see evidence of the purchase.

For those who are buying a newly built home, Bennett suggests speaking with the home’s builders before applying for the rebates, as they may file for the rebates on your behalf.

“It’s often a builder will fill out those forms for you and make that claim and in fact, the price you may see in their advertisements might already reflect that rebate,” he said. “So, you want to make sure you ask those questions to the builder.”

For those who have questions about applying for the rebates, Bennett recommends getting in contact with a realtor, lawyer or banker to get more information.

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