As a first time home buyer, you also need to consider income tax planning when buying a home. First time home buyers can claim a rebate on their income taxes in the year that they purchased a home. If you are a couple both spouses can claim the rebate.
You can get more information on the rebate here: http://www.cra.gc.ca/hbtc
For people who are self employed you also need to understand how your income that is declared on your tax return will be viewed when applying for a mortgage. In order to increase the amount of mortgage you can be approved for, it’s best to make sure you try and increase your net income on your return.
For homeowners who are refinancing, you also need to understand that prime lenders will not refinance CRA debt typically. Alternative lenders will need to be looked at in these scenarios.
Watch this episode with mortgage broker Tracey Brock of Dominion Lending Centres where she will discuss income tax planning for home buyers.
For more information on financing or if you need a mortgage broker, contact Tracey Brock of Dominion Lending Centres.
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