Here is a quick guide to get you started on the road to homeownership.
Buying your first home is an exciting milestone, but it can also feel overwhelming with so much to learn and consider. From understanding down payments and mortgage options to navigating government programs and tax benefits, there’s a lot to know. But don’t worry—this is just the tip of the iceberg! I’m here to simplify the process, provide you with all the tools and insights you need, and guide you every step of the way.
Let’s make your first home-buying experience as smooth and enjoyable as possible!
Who Counts as a First-Time Home Buyer?
Good question! You’re considered a first-time buyer if:
- You must be at least 18 years of age.
- You must be a Canadian citizen or permanent resident.
- The property/home you bought must be in Canada.
- You cannot have owned a home within the last four years.
- If you're buying with a spouse (or common-law partner) who is not a first-time homebuyer, you cannot have lived in a house that they owned within the last 4 years.
- You must have documentation verifying that you have purchased a home.
- You must intend to live in the home as your primary residence within one year of purchase.
The Following is Your Guide to First-Time Home Buyer Programs in Canada
Canada has some fantastic programs tailored just for first-time home buyers. These initiatives can save you cash and make the journey smoother. Let’s break them down, so you know exactly what’s available and how to make the most of them.
Tax-Free First Home Savings Account (FHSA)
This program is like an RRSP and TFSA combined for first-time buyers. You can save up to $40,000 tax-free and withdraw it tax-free for your home purchase.
Quick Info:
- Must be a Canadian resident and at least 18.
- Contributions max out at $8,000 annually.
- Use it within 15 years, or it gets rolled into your RRSP.
Estimate how much you could save for a down payment for your first home by participating in your FHSA .
Home Buyers’ Plan (HBP)
The HBP allows you to borrow up to $35,000 from your RRSP (or $70,000 as a couple) for your down payment. You’ll repay this amount interest-free over 15 years.
Quick Info:
- You must have an agreement to buy or build a home.
- Funds must be in the RRSP for at least 90 days before withdrawal.
- You can re-use the HBP if you meet the first-time buyer definition again.
First-Time Home Buyers’ Tax Credit (HBTC)
The HBTC gives you a $10,000 tax credit to help offset closing costs like legal fees and inspections. This translates to a $1,500 reduction in taxes owed.
Quick Info:
- Must be a first-time buyer.
- The home must be your primary residence.
- Can be claimed by either partner if you’re purchasing as a couple.
GST/HST New Housing Rebate
When you buy a new home or build one from scratch, you pay GST (Goods and Services Tax). In Alberta, that’s 5% of your home’s price. The rebate lets you recover some of that GST, saving you thousands! Think of it as the government saying, “Welcome to your new home. Here’s a little cash back for the road!” 🚪💸
How Much Can You Save?
- Full Rebate: You can recover 36% of the GST on homes priced up to $350,000.
- Partial Rebate: For homes between $350,000 and $450,000, the rebate decreases as the price increases.
- No Rebate: Homes over $450,000 aren’t eligible.
If you’re building your home or buying from a builder, this rebate can be the cherry on top of your homeownership cake. 🎂
Who Qualifies?
You’re eligible for the GST rebate if:
- The home is newly built or you’ve contracted someone to build it.
- You’re buying the home from a builder (or even a mobile or modular home).
- The home is your primary residence—this isn’t for investment properties.
- The purchase price meets the rebate limits mentioned above.
Pro Tip: If you’re building a home, the land cost can also count toward eligibility!
How Do You Apply?
The process is surprisingly simple:
- Builder-Included Rebate: Many builders will apply for the rebate on your behalf and include it in the purchase price—easy peasy!
- Direct Application: If the builder doesn’t handle it, you can submit the forms yourself to the CRA (Canada Revenue Agency).
Be sure to keep your receipts, invoices, and proof of primary residence handy.
Métis Down Payment Assistance (2024)
Why Now is the Time
Homeownership is more than just having a roof over your head—it’s about creating a space that truly feels like yours. From navigating mortgages to finding that perfect property, every step is unique and personal. I’m here to make the journey exciting and stress-free, blending professionalism with a friendly touch. Whether you’re buying your first home or your forever home, let’s work together to make your dreams a reality.
With these programs, buying a home has never been more achievable. These programs add flexibility and value, making 2024 a golden year for first-time buyers.
Ready to get started?
