Thinking about a mortgage?
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Buying your first home can be a daunting experience. It’s almost certainly the most expensive purchase you’ll make in your life. In order to buy a home, you’ll need to get a mortgage.
Understanding how the mortgage process works will help you. In addition, there are various programs available to first-time homebuyers in Canada to help make buying your first home more affordable.
Here are some of the resources available if you’re looking to take the big leap of becoming a first-time homebuyer:
- First-Time Home Buyer’s Tax Credit—This program amounts to a $750 rebate for first-time buyers and is meant to help defray housing costs such as legal and inspection fees. To receive the credit, you must claim it on your tax return.
- Home Buyers’ Plan—When you withdraw money from an RRSP, it counts as income. But under this plan, the federal government allows you to borrow up to $25,000 from your RRSP to be used towards a down payment on your first home. The borrowed amount must eventually be repaid back into the RRSP. Otherwise, tax penalties will apply.
- Land Transfer Tax Rebate—This is available to residents of Ontario, British Columbia and Prince Edward Island. These rebates offset some of the land transfer tax that must be paid when you purchase a home. In the City of Toronto, the rebate is particularly high: First-time buyers can get up to $3,725 back.
- GST/HST New Housing Rebate—If you’re buying a new home (such as a pre-construction condo or house), this rebate is actually available to all buyers, regardless of whether they’re first-time purchasers or not. Only homes with a net purchase price of $450,000 or under qualify for this program.
You can qualify for the best rates
Just because you’re buying a home for the first time doesn’t mean you can’t get the best mortgage rate available. Financial institutions will usually offer you the same terms as individuals who have previously purchased a home if you have an excellent credit score and aren’t overloaded with debt.
Contact CanWise if you’re buying a home for the first time.