Are You a First Time Home Buyer?
Are you sitting on the fence, waiting for the market to simmer down to buy your first home?
To some, buying your first home can feel overwhelming and stressful if you’re not sure where to start. So let’s go through it.
I’m thrilled to report from the front lines that the market seems to have settled down. What does this mean exactly? With interest rates currently holding at 5.0% and fair home prices, now is a good time to look at your options. Getting pre-approved for a mortgage and looking at Home Buyer Incentives are the best first steps towards owning your first home. This will let you know how much you can afford so that you know what works best for you and your budget. There are also programs out there that can help you achieve the dream of owning your first home.
Here are some options available to you, to fast track you to home ownership.
RRSP Home Byers’ Plan
Another option to look into is the RRSP Home Byers’ Plan (HBP). If you haven’t purchased a home within the last four years (or lived in a spouse’s home in the same timeframe), you may qualify for the HBP. The HBP isn’t a credit or rebate. Instead, it allows first-time home buyers to use their tax-sheltered savings in a Registered Retirement Savings Plan (RRSP) for their down payment. As a first-time home buyer, the HBP lets you withdraw up to $60,000 for your down payment, which must be repaid into your RRSP within 15 years.
Land Transfer Tax Rebate
In Ontario, you’re charged a land transfer tax when you buy a house. This is generally between 0.5% and 2.0% of the purchase price of the property, and represents the largest closing cost you’ll have to pay. In an effort to help first-time home buyers, you’re rebated some or all of this tax if you’re eligible.
First Time Home Buyers’ Tax Credit
This Tax Credit was introduced in the 2009 federal budget. It allows first-time home buyers in Canada the opportunity to recover some of the costs associated with their purchase. It helps offset legal fees, inspections and other similar closing costs. The First Time Home Buyers’ Tax Credit is a non-refundable credit valued at $1,500.
If you’re look at buying a newly built home, then this next tax credit may be for you!
HST New Housing Rebate
The HST New Housing Rebate offers money back to Canadians who buy a newly-built home. The HST portion of a new home purchase can be rebated to all Canadians who qualify. It’s not exclusively available to first-time home buyers, but it’s regularly used by first-time home buyers that are buying newly-built homes.
How much do you need for a down payment as a first-time home buyer?
The amount you save for your home purchase down payment doesn’t depend on your status as a first-time home buyer. However, in Canada, home buyers must have a minimum percentage of the home’s purchase price on hand.
The amount depends on how much the home costs:
- If the purchase price is less than $500,000, the minimum down payment is 5%.
- If the purchase price is between $500,000 and $999,999, the minimum down payment is 5% of the first $500,000, and 10% of any amount over $500,000.
- If the purchase price is $1,000,000 or more, the minimum down payment is 20%
And the market…. Here is an overview of where the Hamilton Burlington Market currently is compared to last year:
Average Residential Price by District:
Whether you’re just starting your Real Estate journey, or you’ve been thinking about it for a while, lets figure it out together!!
Feel free to check out my website for additional FAQs for First Time Home Buyers: besthamiltonrealestate.com/first-time-home-buyers/
Give me a call to discuss your finances and your real estate plans and aspirations!
For additional First Time Home Buyer Programs, click here: https://www.ratehub.ca/first-time-home-buyer-programs
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Posted from Canada: