New Homeowners Tax Credits 2015 You Need To Know About

Buying a new home puts a huge strain on your finances but knowing about new homeowner tax credits in 2015 will definitely lighten the load.  They won’t singlehandedly take the pressure off but qualifying for enough of them definitely makes a difference.

Different strokes for different folks

Knowing what kind of tax credits are out there is half the battle.  There’s several different kinds but we can break them up into three simple categories:  financial, family, and supplementary.

For your purposes, you’ll want to be focused on the financial but the rest shouldn’t be ignored.   If you qualify, take it.

Some of the tax credits you should check out include:

Financial:

  • First Time Homebuyer’s Tax Credit – It helps you out by offering a $5000 non refundable tax credit as long as it’s the first home you’ve lived in and owned in the past four years and the residence is a qualifying home
  • Tax Free Savings Account – It’s much easier to save if you have a secure, tax-free account that you don’t have to worry about paying.  Most Canadian banks now offer one.

Family:

  • Home Care Services Tax Relief – GHST and HST exemptions to individuals with a wide range of disabilities.
  • Medical Expense Tax Credit – Supporting a dependent relative by claiming anything over 3% of their net income.
  • Children’s Arts Tax – Up to $500 of eligible expenses can be claimed for your child’s programs.

There are definitely a few more tax credits you can pile on but those are the main ones.  In terms of money, if you’re seeking more of a sizeable amount without going to a lender there is an alternate way.

Opening up the reserves

Did you know that you could use your RRSP to finance your home?  If your home qualifies, you’re allowed to withdraw up to $25,000 from your RRSP as long as you’re a first time homebuyer (like the credit above).  If you’re purchasing the property with your spouse and you both qualify as new homebuyers, you can actually combine both withdrawals for a total of $50,000.

There is a bit of a catch.  The thing with withdrawing from your RRSPs is that unless you intend to set up repayments over the next 15 years or less, the money you gain will count as income.  In a way it’s sort of like taking out a loan from your future RRSP fund.

Fixing the odds in your favour

Making the home buying process easier is about using every resource available.  Tax credits make it easy but there are other things you can do to make sure your money doesn’t go to waste.

Consider preapproved loans to bolster your chances of gaining confidence with the seller.  A home inspection can make sure your investment is in good shape and energy efficient, saving you money on bills.

Either way, simply being aware of new homeowner tax credits available in 2015 is enough to give you an edge.

Find the perfect home

Clearly, finding a home that meets all your needs, and doesn’t break your budget is also crucial.

Finding the right home for your wants and needs can be very challenging, At Previn Court Homes, we recognize the peace of mind that a newly built home provides, and our friendly staff takes the time to introduce you to all of the features of our quality residences.

With over a thousand homes built over the last few decades, and plans to build thousands more, we know how to create houses that families call home, and we invite you to explore our models.  Contact us to learn more about our homes, or register for priority updates and special offers, and let us help you find your dream home.

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