Buying a home in Toronto which in the past was the joy of every individual has now become a dreadful thought as the sizzling housing markets has grown way above the purchasing power of buyers. After going countless process involved in buying a home, one should count themselves very lucky if they do not get over powered by the ongoing bidding wars in the market.
But the problem does not end there; home buyers are then challenged with additional debt ratios backed by home maintenance and other household related costs.
The idea of owning a home in Toronto is quite scary which is why people in search of homes should have their ears on the ground for all possible tax breaks. From government loan programs to rental property tax reductions, it is very essential to get hold of every possible penny as it really counts.
For first-time buyers, they can take advantage of the twenty-five year interest free loan offered by the government o make housing more affordable for first-time buyers. The tax encompasses all home types with buyers standing the chance to have $750 for a home value of $5,000.
Furthermore, people not wanting or qualified for the loan program can make use of the HST new housing discount of 13% for newly renovated homes. Buyers of condo properties worth below $450 can benefit from this tax discount. However, the highest discount in Ontario is $24,000 while there are other tax discounts for properties constructed by owners.
Retirees are not also left out of the picture as they can also benefit from the Home Buyers’ Plan which allows those saving for retirement to withdraw close to $25,000 from their RRSP.
People who cater for seniors and disabled people have good news as they can qualify for the home-accessibility tax credit which came into effect in 2016. The tax covers cost such as renovation expenses for wheelchair ramps, handrails, and walk-in tubs. People in this category can get up to $10,000 in costs.
If your are working for home you might want to take advantage of the freelancers or contractor claims which includes electricity bills, home insurance and cleaning materials.
With all these in mind, one does not have to worry much about the sizzling market as you can make the most out of the biggest purchase of your life.