Mississauga First-Time Homebuyers: Your 2024 Guide to Grants & Incentives

July 20, 2024
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Guide

Mississauga First-Time Homebuyers: Your 2024 Guide to Grants & Incentives

Buying your first home in Mississauga is an exciting milestone, but it can also be a daunting financial endeavor. Luckily, various government programs and incentives are designed to help first-time homebuyers like you overcome the financial hurdles and make homeownership more attainable. This comprehensive guide will walk you through the available grants, rebates, and tax credits you should know about.

Federal Government Incentives

  1. Home Buyers' Plan (HBP): The HBP allows you to withdraw up to $35,000 from your Registered Retirement Savings Plan (RRSP) to purchase or build your first home. You have up to 15 years to repay the amount withdrawn.
  2. First Home Savings Account (FHSA): Introduced in 2023, the FHSA combines the benefits of an RRSP and a Tax-Free Savings Account (TFSA). You can contribute up to $8,000 per year and a lifetime maximum of $40,000, and both your contributions and investment growth are tax-deductible. Withdrawals for a first home purchase are tax-free.
  3. First-Time Home Buyer Tax Credit (HBTC): The HBTC is a non-refundable tax credit of up to $750 that helps offset closing costs like legal fees and inspections.
  4. GST/HST New Housing Rebate: If you buy or build a new home in Mississauga, you may be eligible for a rebate on the GST/HST paid on the purchase price.

Provincial Government Incentives (Ontario)

  1. Ontario Land Transfer Tax Refund:  First-time homebuyers in Ontario can receive a refund of up to $4,000 on the provincial land transfer tax.
  2. Ontario First Home Savings Account (OHFSA): This provincial program is similar to the FHSA, offering additional tax benefits for Ontario residents.

Municipal Programs (Mississauga)

  1. Mississauga Affordable Home Ownership Program: This program offers financial assistance to eligible low- and moderate-income households for down payment and closing costs.
  2. Mississauga Home Energy Conservation Program: This initiative provides incentives for energy-efficient upgrades to your new home.

Additional Tips for Mississauga First-Time Homebuyers

  • Get Pre-Approved for a Mortgage: Knowing your budget will help you narrow down your search and make a stronger offer when you find the right home.
  • Work with a Real Estate Agent: A local agent familiar with the Mississauga market can be invaluable in your home search.
  • Research Neighbourhoods: Mississauga offers diverse neighborhoods, each with its own character and amenities. Explore different areas to find the one that suits your lifestyle.
  • Inspect Thoroughly: Always have a professional home inspection to ensure there are no hidden issues.
  • Budget for Closing Costs: These costs can add up, so factor them into your overall budget.

A Note About the First-Time Home Buyer Incentive (FTHBI)

The federal government's FTHBI program, which offered shared equity mortgages, has been discontinued as of March 2024.

Conclusion

Buying your first home in Mississauga is an exciting and rewarding experience. By taking advantage of these available grants, rebates, and tax credits, you can make the process more affordable and set yourself up for a successful homeownership journey.

Remember, the real estate market is constantly changing, so it's crucial to stay informed about the latest incentives and programs. Consult with a financial advisor or mortgage specialist for personalized advice tailored to your specific situation.

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