While real estate is no minor purchase, homeownership is far more attainable than many prospective buyers recognize. To that end, with a well-structured budget and full utilization of the vast support available, buyers can reach their real estate goals without major financial strain. 

As a top-producing real estate team based in Toronto, we’ve helped countless clients discover and buy their dream homes. In this blog, we’ll offer key insights on how you can do the same  – without breaking the bank.

Take All The Help You Can Get 

As a home buyer in Toronto’s contemporary real estate landscape, you are facing different dynamics and conditions compared to past generations. With that in mind, buying a home without exceeding your financial resources will likely require some outside help. For many young Torontonians, this means accepting some financial support from parents or other family members. 

While this isn’t always an ideal solution for every buyer, it can make a substantial difference in what you can afford and how your home purchase impacts your overall financial health. 

Take Advantage of Government Incentives

Beyond support from family members, today’s buyers can also utilize several government programs and incentives aimed at alleviating the financial burden of homeownership. When employed, these initiatives can not only expedite your market eligibility but also significantly reduce certain costs associated with your home purchase.

For First Time Buyers 

With several available programs, many of Canada’s federal housing benefits (in addition to various provincial initiatives) are specifically intended to help first time buyers get into the market. 

First Home Savings Account

The First Home Savings Account is a registered plan that allows Canadians to save for their first home tax-free (up to a certain amount). While saving for your home, you can claim up to $8,000 in FHSA contributions on your income tax return. 

Land Transfer Tax Rebate

One of the largest accessory costs home buyers face is provincial and municipal land transfer taxes (LTT). In Ontario, certain first time buyers are eligible for a rebate on the provincial LTT up to $4,000.

First Time Home Buyer Incentive*

As of 2024, the First Time Home Buyer Incentive has been discontinued. 

For All Home Buyers

In addition to programs aimed at first time buyers, some incentives support mover-uppers and downsizers as well. 

Home Buyer’s Plan

Available to most buyers, the Home Buyers’ Plan allows you to withdraw up to $35,000 from your registered retirement savings plans (RRSP) towards a home purchase.

New Housing Rebate

If you buy a custom or newly-built home from a builder or developer, the New Housing Rebate allows you to reclaim a portion of the federal tax (GST) included in the HST of your purchase. 

Preparing to purchase a home in Toronto? Explore these related posts for helpful anecdotes and insights. 

Other Alleviation Strategies

Beyond government incentives, home buyers can employ other strategies to alleviate the financial burden of their purchase. 

Be Open to Compromise

Depending on your ambitions and financial situation, you may need to recognize that your next home won’t be your forever home – and that’s ok. By scaling down your wish list, you can reduce the financial pressures of your purchase. Further, the equity earned through your next home can be leveraged to ascend the property ladder later on.

Buying a Home With a Secondary Suite  

Buying a home with an existing secondary suite or adding one after you’ve moved in gives you the opportunity to earn high-quality passive income that can directly offset a portion of your mortgage costs. 

Want to know more about the strategic value of purchasing a home with a built-in secondary suite? We’ve penned a full article on the topic. Click here. 

Work With an Expert

Finally, the most effective way to protect and optimize every last cent of your home buying budget is to work with a knowledgeable, top-performing Toronto real estate agent. By incorporating unique strategies like expanding your search parameters, ensuring you’re aware of every available incentive, and identifying avenues for income potential, they can guide you towards a smooth home purchase that limits financial strain. 

Buying With Ramsay Group

Veterans of Toronto’s famously fickle market, we leverage our dynamic industry expertise to match you with the right property while getting you the best value for your dollar. 

Our analytical approach can help you maximize your home purchase through comprehensive financial planning, informed insights on government incentives, and fierce negotiation tactics that protect your bottom line. Leveraging our deep expertise and data-informed approach to buying real estate, we’ll educate you toward a confident, informed decision.

Looking to maximize your buying budget? Ramsay Group is your ticket to a successful home purchase. Click here to contact us by email or call 416.906.8366 to begin your bespoke buying journey.

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