Buying your first home in Canada is an exciting milestone, but if you’re in Toronto, you might face some changes soon. The city is considering a big 10.5% hike in residential property taxes, the biggest one since 1998, to help cover a nearly $1.8 billion budget gap. This hike includes a 1.5% increase in the city building tax, which goes towards big transit and housing projects. If this goes through, it could mean an extra $26.75 a month, or $321 a year, for homeowners. And, if there’s no help from the federal government, this could even jump to 16.5%. Right now, Toronto folks have a chance to speak up about this in public consultations for the 2024 budget, especially on key issues like affordable housing and public transit. 

To help you handle these financial shifts, here are five tax tips that could save you some money: 

First-Time Homebuyer Credit 

If you’re buying your first home, there’s a special tax credit for you. If your new home was bought in 2022 or later, you could get a tax credit of up to $10,000. For homes bought in 2021 or before, the credit is $5,000. This flat-rate credit is for those who haven’t owned a home in the last four years and are buying a qualifying place like a single-family house, semi-detached, townhouse, mobile home, condo, or apartment. Either you or your spouse can claim this, or you can split it between you two. And if you’re buying a more accessible home because of a disability, or for a disabled relative, you might also get this credit, even if the four-year rule doesn’t apply to you. 

Paying Back the Home Buyers’ Plan 

The Home Buyers’ Plan is another handy tool, letting first-time buyers take out up to $35,000 from their RRSPs without tax to help buy or build a home. If you’ve used this plan, remember you need to start paying it back the second year after you took the money out, and you’ve got 15 years to do it. The amount you need to pay back each year will be on your Notice of Assessment from the CRA, and if you miss a payment, it gets added to your taxable income. 

GST/HST New Housing Rebate 

This rebate is for those who’ve bought a new or significantly renovated home, helping reduce the GST/HST cost. The amount you can get back depends on the home’s price and the GST/HST you paid. 

Rental Property Relief 

If you own a rental property, you’ll feel the property tax increase too. But, you can deduct lots of expenses related to your rental, like property taxes, mortgage interest, utilities, insurance, repairs, and maintenance. This can help lower your taxable income, saving you money based on your rental income and expenses. 

Home Accessibility Tax Credit 

If you’re making your home safer or more accessible for seniors or those with disabilities, you might qualify for up to $10,000 in expenses for the home accessibility tax credit. This is for seniors, those with a valid disability tax certificate, or those supporting someone who qualifies. 

Big Life Changes? No Problem 

Orientum Group is here to help you spot the deductions and credits you can get to save money when tax time comes around. Plus, you can talk to us if you’ve got questions.