There’s great news for first time homebuyers looking for a mortgage in Ontario. Starting January 1, 2017, the Ontario government is doubling the tax rebate amount for new homeowners. When looking at affordability, every little detail counts, and this change will help improve first time homebuyers’ attempts to quality for the mortgage they need.
The Canadian Broadcasting Corporation reported that the Ontario government’s recent announcement of this tax rebate is in direct response to the growing concern that Toronto’s real estate market is becoming unaffordable for first time homebuyers. What this means for Londoners, however, is that people get to benefit from a stable, affordable market while also reducing the tax rebate amount, which results in a win-win situation.
After January 1, 2017, the maximum rebate amount is being doubled from $2,000 to $4,000, meaning that there will be no land transfer tax for homes up to the purchase price point of $368,000.
Because of the rising cost of real estate, the government has taken in over $314 million more than expected from land transfer tax in 2016. Ontario’s housing market shows no signs of slowing down, and this increased rebate is going to help the bottom line of first time homebuyers.
It can be challenging to save up for a down payment for a first home or condominium, and every little bit helps. Especially as London homes are starting to become more expensive, this “small change,” as dubbed by Premier Wynne, can help make the difference. Especially if a first time homebuyer is looking for real estate above the $300,000 price point, this tax rebate is going to save money where it really counts.
At Summerside Mortgages, we love helping first time homebuyers get into the market and are excited about this change as we know that there will be some of our clients who will be able to get more bang for their buck come January 2017.
If you’re interested in learning what amount of mortgage you can afford, feel free to get in touch with us for a free, no-obligation review of your financial situation to see how much you would qualify to borrow. Even if the amount isn’t exactly what you’d like to see, we are here to help you learn how to improve your results and get yourself in the best financial shape to become a proud homeowner. We love being a critical part of the team behind your home buying experience and have extensive experience getting people the financing situation that is right for them.
Come talk to us today to see how these new rules might just make it that much easier for you to purchase your first home or condominium. We’re excited to see how we might be able to help you!
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Your London, Ontario Mortgage Brokers