Are you familiar with any first-time home buyer programs? There are a range of programs that aim to make it easier to buy your first home. You should familiarize yourself with any programs that apply to your situation. Here are 4 first-time home buyer programs you should be aware of:
First-Time Home Buyer Programs
1. RRSP Home Buyer's Plan
You may qualify for the RRSP Home Buyer’s Plan if you have not purchased a home within the last 4 years. With the RRSP Home Buyer’s Plan, you may borrow up to $35,000 tax-free from your RRSP to use towards your down payment. But, that money must be in your RRSP for at least 90 days before the purchase of your home. And, you must start repaying the amount borrowed from the RRSP 2 years after you buy over a 15 year period.
2. Land Transfer Tax Rebate
When you purchase a house, you pay land transfer tax. This is approximately between 0.5% and 2.0% of the purchase price of the property. Land transfer tax also represents the largest closing cost you will have to pay. As a first-time homebuyer, you may be eligible for a refund of all or part of the tax.
3. First-Time Home Buyer's Tax Credit
The First-Time Home Buyer’s Tax Credit was introduced in 2009 as part of “Canada’s Economic Action Plan” to help first-time buyers recover some of the costs associated with their purchase. It is designed to help recover closing costs such as legal fees, inspections, and land transfer taxes. This is a non-refundable credit and is valued at $750.
4. GST/HST New Housing Rebate
Buying your home before it is built? Renovating an existing home? Then, you may qualify for the GST/HST New Housing Rebate. Even though this rebate is often taken advantage by first-time buyers, it is also available to all who qualify regardless of whether they have owned a home before. The amount of the GST/HST new housing rebate depends on the purchase price of the home and can only be claimed if the net purchase price is $450,000 or lower.
