With home prices spiralling upwards the dream home that many Canadians aspire may seem out of reach. But the good news is that with the right guidance, you can be a step nearer to your dream home as a first-time Canadian home buyer. Canadian government helps the first-time home buyer with many programs offering incentives, rebates of grants, tax credits, etc. One such grant provides the home-buyer with money to make their home energy-efficient in a bid to help fight climate change. Another program is where the government offers an incentive in the form of a shared-equity mortgage. In this program, the government pays a part of your down payment towards the house, thus your monthly payments get reduced and you can use that money for other things.
While the program that suits you depends on your financial situation, here are some first-time home buyer grants available in Canada:
GST/HST new housing rebate: You could also qualify for a rebate on a portion of the sales tax if you are buying the home before it is constructed or if you decide to renovate an existing home to a substantial extent. The amount you will get as the GST/HST new housing rebate is dependent on the buying price of your home. This rebate can be claimed only if the net purchase price of your home is $450,000 or less. The good news is that this rebate can be claimed by all Canadians who qualify for it irrespective of the fact that they have owned a home previously or not.
Canada greener homes grant: This grant was introduced by the federal government to encourage Canadians to look at more energy-efficient homes. Under this grant, one can get up to $5,000 available to make their homes, energy efficient. Some may even qualify for an additional $600 for EnerGuide evaluations as well as expert advice.
First-time home buyer incentive: First-Time Home Buyer Incentive is a program by the federal government offering between 5 to 10% amount of the price of the house which can be used as a down payment. This is a great financial help for home buyers as their mortgage cost is lowered when they make a bigger down payment. The FTHBI is also an interest-free loan and instead is a shared equity mortgage. The loan is given on the basis of the fair market value of the house, and if the property value increases at some point the government gets to share the gains. But the FTHBI loan has to be repaid in 25 years from the date of borrowing or when the house is sold, whichever comes first.
First-time home buyers’ tax credit: As part of Canada's Economic Action Plan, the First-Time Home Buyers' Tax Credit was launched to help the citizens of Canada in buying their first home. The plan is structured to assist recovery of closing costs which include inspections, land transfer taxes, legal expenses, etc. Those individuals who are eligible as first-time home buyers can claim a $5,000 non-refundable income tax credit on a qualifying home. These buyers would get up to a $750 tax rebate. The credit must be claimed within one year of buying the home. In order to avail of the First-Time Home Buyers' Tax Credit one has to meet certain requirements. If you are a first-time home buyer and need help, do contact us at LendX Financial in Brampton, Greater Toronto Area.