Buying your first home can be both stressful and exciting! There are often expenses you will be unaware of. You’ll need to start saving for a down payment and the costs that go along with purchasing a home as well.
If you don’t think you’ll be able to afford a home, the federal government offers a variety of incentives for first-time homebuyers you can take advantage of to ease the processs. Read below to discover the tax credits and rebates, grants, and programs available to first-time home buyers.
Tax credits for first-time home buyers
If you’re buying your first home you may have access to a number of tax breaks. These include the First-Time Home Buyers’ Tax Credit which is claimed on your annual tax return. In most provinces, first-time home buyers can also claim a land transfer tax rebate. First-time home buyers can also take advantage of tax-sheltered savings using the Home Buyer’s Plan, which allows you to withdraw money tax-free from your RRSP to buy a home.
First-time home buyer programs
First-time homebuyers can take advantage of many government programs to help ease the expense of buying a home. The programs offered include tax credits (including the land transfer tax rebate), the Home Buyer’s plan, and the GST/HST new housing rebate. Mortgage insurance is offered by the Canada Mortgage and Housing Corporation (CMHC) and other private insurers, and allows all home buyers including first-timers to buy a home with a down payment of as little as 5%. Cash grants are rare, but the programs available can help buyers save thousands of dollars.
Mortgage rates for first-time home buyers
As long as you have good credit, and a sufficient down payment, you will likely be able to qualify for the best mortgage rates in the market even if you’re a first-time home buyer. It’s not necessary to apply for a mortgage from the financial institution you do your everyday banking with. In fact, our main focus is to ensure you get approved for the best rate you deserve. We do the rate shopping for you. Saving you time and money!