Owning land or a house will be one of the great steps in your life, a hallmark, a major milestone… so, we say: Take the leap! Having your own home or land provides security for our loved ones and constitutes the heritage for our families. That is why in today’s edition, we will highlight the most important benefits to home or land ownership.
KEEP IN MIND THE FIRST-TIME HOME OR LAND OWNERSHIP BENEFIT OF:
1. Tax Exemption – Many people may not even think of this type of deduction due to simple lack of awareness or difficulty in understanding the current laws that support them. In some cases, those deductions or exemptions can mean great refunds.
There are many expenses that the government allows you to deduct from your declared income, and being a first-time homeowner is one of them. Tax exemptions provide extra disposable income, by reducing the amount of tax you pay. You will first have to seek approval from the Inland Revenue Division, and then claim the tax deductions while filing your tax return the following year.
From 2022, there is also the increase the first-time homeowner tax-allowance limit from TT$25,000 to TT$30,000 per household on mortgage interest for the first five years. Tax deductions on home ownership would provide extra disposable income by reducing the amount of tax paid.
Make sure to read Ministry of Finance – Reducing Your Income Tax and Inland Revenue Division – Deductions and Required Supporting Documents, Income Tax Return for more information.
2. Exemption from stamp duty up to a maximum of TTD$1.5 million – Stamp duty is a tax that must be paid when doing certain transactions that require legal documents. The public is required to pay stamp duty tax to the Inland Revenue Division (IRD) when buying real estate or a home, or seeking a mortgage.
As a first-time Homeowner constructing your own home on approved lands, or having both home and land, the mortgage deed you receive will qualify for exemption up to a maximum of TTD$1.5 million where the mortgage is for the construction of that home.
3. Affordable housing programmes – There are several private affordable housing programmes to choose from. The Government has revised its Affordable Housing Programme. For instance, if your household income is TT$14,000 or lower per month, you can now access a 2% mortgage financing for properties valued up to TT$1,000,000. Visit Owning your first home has never been this easy! for more insights.
With TTMF, a 2% facility offers up to 100% financing, a maximum repayment term of 30 years, inclusive of TT$20,000.00 approved for major appliances. For a 5% mortgage facility, your income must range between TT$14,001 and TT$30,000 per month for properties valued up to TT$1.5 Million, with 95% financing and the maximum term of the loan at 30 years up to age 70.
Check out TTMF’s 2% Program and 5% Mortgage Program to read up about TTMF’s mortgage rates.
Become Home Smart
The benefits are huge! Check out TTMF’s Five Steps to Financing to read up about TTMF’s mortgage application process…the easiest on the market.
Remember, TTMF is always here to help. Make an appointment with a knowledgeable TTMF representative by logging on to www.ttmf-mortgages.com to chat online or call 623-TTMF.
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Tax Deduction for First-time homeowners
How to Finance your Home Construction
Key Steps to financing your First Home