First Time Buyers
Buying your first home is very exciting! It can also be somewhat overwhelming as there are a large number of things you need to know and steps that will need to be taken.
We are passionate about working with First Time Buyers and making your first home purchase an enjoyable and stress free process. Come see us now, whether you are looking to buy today or at some time in the future. Find out what you will qualify for and be sure to have everything in place so when the time does come you will be prepared.
We can connect you with some great realtors, lawyers, home inspectors, and/or builders. As well as communicate with everyone involved in this transaction to keep the process moving quick and efficiently. We will educate you on the mortgage products available today as well as a detailed list of all the costs involved.
Benefits of being a First Time Buyer
Reduce or Eliminate your Property Transfer Tax
When you purchase or gain an interest in property that is registered at the Land Title Office, you are responsible for paying property transfer tax.
The First Time Home Buyers' Program reduces or eliminates the amount of property transfer tax you pay when you purchase your first home. If you qualify for the program, you may be eligible for either a full or partial exemption from the tax.
Use your RRSP for your Down Payment
You can use up to $35,000 of your RRSP savings ($70,000 for a couple) to help finance your down payment on a home.
-
It might possibly allow you to accumulate the 20% down payment needed to avoid having to pay default insurance premiums.
-
Your $35,000 RRSP contribution will count as a tax deduction for that year.
-
You will not be taxed on the amount you withdrawal if you pay it back within 15 years.
Income Tax
Credit
First-Time Home Buyer’s Tax Credit (HBTC)
Claim up to $10,000 in costs associated with buying a home on your next income tax return up with a return of 15%. (Maximum return $1,500)
Government
Loan Program
Discontinued as of March 21, 2024
First time buyers would need to have their minimum 5% down payment. Then CMHC will provide an extra 5% for the purchase of existing homes, or 10% for the purchase of a new build, reducing your mortgage balance. This will be an interest free loan registered against the title of your home.
First Home Savings
Savings Account (FHSA)
This program is specifically designed to help first-time homebuyers save for their down payment without having to pay taxes on the interest earned on their savings.
This means that the interest earned on the savings in the account is not taxed, nor are withdrawals from the account. Plus, since your contributions to this account are not taxes, your money will have the opportunity to grow faster than a traditional savings account.
*Can be combined with the RRSP Home Buyers Plan (HBP)
