Are You a Senior Homeowner? You Could Be Eligible for This Government Grant

This tax grant for seniors may just be in Ontario, but make sure you read everything before deciding if you can apply!

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Getting older can be difficult, but honestly, there are many financial benefits that come with it! Today though, I’m not just talking about some early bird special or seniors’ discount at Shoppers Drug Mart. Today, we’re talking about free money from the government.

If you’re a senior who is currently a homeowner in Ontario as well, then you could be eligible for the Ontario Senior Homeowners’ Property Tax Grant (OSHPTG).

What is the OSHPTG?

The OSHPTG is a tax grant that aims to help offset property taxes for senior homeowners who have low to moderate incomes. The program is funded by the province of Ontario, so it isn’t offered on a federal level.

Applying is easy, as you can simply apply when you file your prior-year income tax and benefit return, with the program going all the way back to 2009. The maximum grant was $250 in 2009 and $500 for every year after that. The payment is then issued in a one-time payment after your notice of assessment.

It’s important to note that it’s not just those that own homes who can apply. If you own or even rent a principal residence in Ontario, then you can apply for the grant. As for what makes low or middle income, the Ontario government states that low income would be for those making under $50,000 per year. A moderate income then would be slightly higher, though this can change year to year.

If you’re eligible

Here’s the thing: that $500 isn’t going to mean much for Canadian seniors who are looking to help with their cash flow. Even if it is to help offset property taxes and other costs of living. Instead, seniors may want to consider investing in safe, stable investments, especially those that provide dividends.

Now, it’s important to note that this should never be done without first meeting with your financial advisor. If you’re already making low or moderate income, then risking your finances in your later years isn’t a great option. So, make sure your debts are paid and that you have an emergency fund available before you go ahead and start investing.

But if your finances are solid, then investing that cash can certainly create some income that can lead to immense returns!

A stock to consider

One stock to consider these days is NorthWest Healthcare REIT (TSX:NWH.UN) for a few reasons. The stock is currently down by about 48%, as of writing in the last year. It therefore now has a huge dividend yield of 12.97%. Of course, this is also because of the major drop in share price. But if you’re looking to put that $500 to work, this is the way I would do it.

Healthcare properties around the world have always been essential but were viewed even more so during the pandemic. This major investment into healthcare properties wasn’t missed by NorthWest stock, and it’s been expanding ever since.

The problem, however, is that the company’s future with a U.K. investor’s joint venture recently fell through. This caused the stock to tank. However, it’s a short-term issue for a long-term stock that continues to have high occupancy rates and long-term lease agreements.

With $223.6 million in free cash flow ready to be used, and stable properties around the world, it’s a great option for that $500. Plus, here is what could happen if you invested $500 now and if it returned to 52-week highs.

COMPANYRECENT PRICENUMBER OF SHARESDIVIDENDTOTAL PAYOUTFREQUENCYPORTFOLIO TOTAL
NWH.UN$6.2580$0.80$64Monthly$500
NWH.UN — 52-week highs$13.4280$0.80$64Monthly$1,073.60

As you can see, your shares would have more than doubled! Add on the payout, and you would have returns of $637.60 after reaching those highs — all from one tax grant.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Amy Legate-Wolfe has positions in NorthWest Healthcare Properties Real Estate Investment Trust. The Motley Fool recommends NorthWest Healthcare Properties Real Estate Investment Trust. The Motley Fool has a disclosure policy.

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