If you’re worried about the cost of buying your first home, you might be interested in several Canadian programs designed to make it easier for first-time homebuyers to get into a new home.
Home Buyer’s Plan
Canadian Revenue Agency’s Home Buyer’s Plan allows first-time buyers to use their RRSPs towards their down payment. Up to $25,000 can be withdrawn from your RRSP, as long as the contribution was made 90 days prior.
This can allow a couple to withdraw up to $50,000 from their RRSPs towards their down payment, and it is only required to be paid back over a 15-year period.
GST/HST New Housing Rebate
You may qualify for a rebate of part of the GST or HST that you paid on the purchase price or cost of building your new house, on the cost of substantially renovating or building a major addition onto your existing house, or on converting a non-residential property into a house.
First-Time Home Buyer’s Tax Credit
Through the Government of Canada’s Economic Action plan, homebuyers who have not owned a home in the last 4 years may be eligible for the tax rebate. The rebate is based on the amount of $5,000 then multiplied by the lowest federal income tax rate for that year.
If you have questions about these programs or any other resources that can help you buy your first home, contact us. We will do our best to help.