Your First Home is a Big Deal.
Buying your first home is monumental. It’s a huge financial investment and a major life milestone. Unfortunately, nowadays it’s more difficult than ever to make the purchase by yourself. Luckily, in a market as diverse and ever-evolving as ours, there are many resources available for first-time homebuyers. In this blog, we cover some of the different ways that people commonly seek financial aid. With proper use of the available systems, you’ll be able to find a great home within your budget.
Government Incentives
There are many programs available through the government which can relieve some of the financial responsibility associated with buying your first home. We suggest looking into these options as one or many could be useful.
- The “First-Time Home Buyer Incentive” helps first-time homebuyers in Canada reduce the weight of their monthly mortgage payments.
- The “Home Buyers’ Amount” is a $5,000 claim to help those who qualify with legal fees, disbursements and land transfer taxes.
- The “Home Buyers’ Plan” allows you to “borrow” $35,000 from your retirement savings plan (RRSP), tax-free, to buy or build a qualifying home. These funds must be repaid to your RRSP within 15 years.
- The “GST/HST New Housing Rebate” allows you to recover a portion of the GST or HST you paid upon purchase of a new construction home.
- If you’re new to Canada, there are many programs available that can help you buy your first home.
Third Party Assistance
There are other ways to lighten the financial burden that comes with buying your first home. If your situation permits, many parents are helping their children with their first downpayment, or subsequent mortgage payments. Co-ownership between parent and child is also an option, with full ownership being a future financial goal for the child. Parents should seek tax advice before proceeding. You might also research the option to renovate your basement and turn it into a legal apartment to help pay your mortgage and create potential future income. We suggest consulting experienced industry professionals such as mortgage brokers, financial advisors and REALTORS®, as they can help you find the right option within your budget.
Happy hunting!
Now that you have a better idea of the resources available, we hope you feel more confident and capable of taking on the challenge of buying your first home. Remember, this article is only a summary as there are likely other sources of financial assistance at your disposal, so do further research and consider which may be effective for your needs. Many of our trusted Royal LePage Team Realty REALTORS® specialize in helping first time home buyers so they are well equipped to help you navigate the challenges ahead.