In Canada a minimum of 5% down payment is required to purchase a home. If you have less than 20% down you will need to have default insurance which is a premium added to your mortgage and paid off during the life of the mortgage.
Land transfer tax (LTT) is often overlooked when considering the total cost of purchasing a home.
To help offset the cost, Ontario and the City of Toronto offer land transfer tax rebates for first-time homebuyers.
Historically, variable rate mortgages out performed fixed rate mortgages because of their deep discounts. However, over the last few years fixed rate mortgages have been at record lows and variable mortgages are no longer discounted as much as they used to be.
The Home Buyers' Tax Credit, at current taxation rates, works out to a rebate of $750 for all first-time buyers.
After you buy your first home, the credit must be claimed within the year of purchase and it is non-refundable.
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