Information all first time home buyers should know

[tpurcell4]

We are constantly receiving questions from potential first time buyers, "What programs are available to help me get into the market and to put money back in my pocket?"

Well here is the quick list of programs available to you:

1) First Time Home Buyers' Plan
CRA Home Buyers Plan

Summary: First time home buyers (have not lived in home you or your spouse or common law partner have owned in the past 5 years approximately). Under program you can access up to $25,000 from your RRSP's tax free towards the purchase of your principle residence. The money must be paid back over 15 years.

2) First Time Home Buyers' Tax Credit
CRA First Time Home Buyers Tax Credit

Summary: During the tax year which you purchase your first home simply fill out Line 369 on your tax return and you can claim your $5,000 dollar non-refundable HBTC which provides up to $750 in federal tax relief!!!!

3) Purchase plus Improvements:

If you are having a hard time finding the perfect home, or the perfect home needs a little TLC - you can add up to 10% of the purchase price for improvements needed on the home onto your mortgage. The catch? Improvements must be approved by way of quote by lender and mortgage insurer when submitting offer to purchase. Also, the money is not released until after work is completed, meaning a you may need to tie up additional cash, arrange payments at end of construction with contractors, short term loan on credit, friend, or the bank of mom and dad may be required in order to get to the funds from the lender.

4) CMHC Green Home

For qualifying homes in Canada that meet CMHC's Green Home initiative receive up to a 10% refund on your Mortgage Loan Insurance Premium.
Learn how to apply for CMHC Green home

5) GST/HST New Housing Rebate

Government of Canada Info page

Receive a rebate on your GST/HST when purchasing a newly constructed home. The majority of new home builders will apply for this on your behalf and deduct it from your purchase price. If your builder does not, do not miss out on this option to put cash back in your pocket!

6) Home Adaptations for Seniors (I know not really for first time buyers, but let your parents and or grand parents know!)

Service Canada Info Page

7) Local Grants for Down Payment

For First Nations:
If you are first Nations living off reserve and a Treaty 7 Member. Program basic outline, receive a grant in the amount of 10% or a maximum of $20,000 which can be used only for the purchase of a home off reservation. Must live in home for 5 years for grant to be non-repayable.

If you are a first time home buyer:
You may be eligible under the City of Calgary's Affordable housing program for down payment assistance. If you can qualify for a mortgage, save $2,000 plus legal fees, earn less than $80,000 or $90,000 with dependent children, and have less than $100,000 in assets you may qualify to receive down payment assistance for the full 5% down payment on a condo or townhouse less your $2,000 savings.

There are various terms and conditions on this program for obvious reasons so for more information please call us 403.700.9252, email us [email protected] or PM us. We would be happy to answer any questions you may have!

Sincerely,

JoAnne & Todd Purcell

[heavyfuel]

Man saving up 10% seems a lot easier than trying to understand all of that. aren't you better off just waiting till you have a decent downpayment, seems to me that using all these govt programs is just gonna keep you on their radar that much more. Last thing anyone needs is the CRA crawling up their ass with a microscope about the purchase that will change your life.

My GF used her rrsp's to buy her condo and IIRC she wasn't allowed to rent it out or sell it, for X amount of time something or other. Dunno, seems to me that if I'm gonna put myself 6 digits in debt, I'd wanna be un impeded as far as what I can and can't do with my investment.

If and when I ever pull it off, it's 10% down cut, dried, and neatly stacked or I just keep renting. Govt is a wolf in sheep's clothing, don't let them fuck you out of your biggest investment.

[tpurcell4]

I respect your dedication to saving up your money and doing it on your own. If you want to keep the government out of your pocket however you will need to save up at least 20% as that is the magic number to avoid paying the CMHC insurance yourself unless you get Genworth or Canada Guaranty to insure the mortgage for you, regardless it is the same outcome.

The links and resources outlined above are resources and tools for home buyers to ensure they know all of the options available to them. It is not expected for anyone to understand all of the information available to them and it our responsibility in the mortgage industry to help educate and make sense of it all.

I wish you all the best as you save up for your own home purchase and this major investment in your life.

Sincerely,

Todd Purcell