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In addition to RRSP funds, funds under the
Ontario Home Ownership Savings Plan (OHOSP) may be used towards a purchase
of a home which provide a tax credit for contributions of up to $2,000
per year to the plan provided that such contributions were made prior
to May 18, 2004 after which no new OHOSP can be opened. To qualify, you
must be earning less than $40,000 per year, or have combined spousal incomes
of less than $80,000 per year. The funds will be provided to the lawyer
by the Bank to be applied towards the closing costs. OHOSP accounts must
be used by May 18, 2011 or be closed.
OHOSP AND LAND TRANSFER TAX REFUND:
(including resale properties)
Under the program, Ontario Land Transfer
Tax must first be paid on completion of the real estate purchase with
a refund application being made by a purchaser after the completion of
the purchase. If your plan was set up prior to January 1, 1994 and the
purchase price of your home (resale or new from the builder) is less than
$200,000 you may also receive a refund of all (or part) of the Land Transfer
Tax payable on the purchase price; such a Land Transfer Tax refund will
not apply to OHOSPs set up after January 1, 1994.
In the Toronto area, Land Transfer Tax is
fully refundable if the plan was set up prior to January 1, 1994 and the
purchase price of the home is less than $150,000; 50% of Land Transfer
Tax is refundable if the purchase price is $175,000; No refund is available
if the price is $200,000 or greater. In between such prices, there is
a sliding scale for the available refund.
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