We have put this together to offer the first time home buyer tips which will help to take any confusion out of the process. Buying your first home in Canada should be an exciting experience. As a first time home buyer however, this major life event can often times seem very overwhelming. That is why it’s important to do your research and go into things prepared to ensure you meet the necessary qualifications.
We’ve put together a list of programs available to you as a first time home buyer to help take the fear out of the process so that you can enjoy each and every step along the way.
The Canadian Mortgage and Housing Corporation (CMHC) has come up with a great checklist and workbook to walk you through each step of the process. If you’re serious about buying your first home, we recommend you take a look to check it out.
Unless you are fortunate enough to come into a significant sum of money, you’re probably thinking about the financial obligations that are ahead of you. Gone are the days of zero down payment. Coming up with your down payment and other closing costs will take time and planning.
Here are a few first time home buyer tips that are designed to help.
#content_43065628First, the Canada Revenue Agency offers the Home Buyers’ Plan (HBP). This is a program that allows you to withdraw up to $25,000 from RRSPs to buy or build a home. Your contribution has to be in the RRSP for at least 90 days before you can withdraw them. Typically you will then have 15 years to repay the amount to your RRSPs, but your first payment doesn’t have to be made until two years after the purchase of your home.
Here are a couple of websites you can visit to find out more about this program.
A second program available to you is the Land Transfer Tax Refund. This is a refund of the provinces land transfer tax paid at the time of closing on your property. The refund is a maximum of $2,000. This allows you to purchase a home up to $227, 500 without having to pay any land transfer fee. To be eligible you have to occupy the home as your principle residence within 9 months of the date of transfer and cannot have ever owned a home, anywhere in the world.
For more information on how to apply and how to determine if you qualify for the Land Transfer Tax Refund visit the following website from the Ontario Ministry of Finance by clicking here.
If you are purchasing a home in Toronto, Ontario you may also qualify for a rebate up to $3,725 through the First Time Home Buyers Toronto Land Transfer Tax Rebate. For more information on that rebate click here.
Although we mentioned previously that the days of zero percent down payment are gone, there may be other ways to obtain a CMHC insured mortgage with no money down. A 5% down mortgage with a 5% cash back component may be an option. If you are someone with a poor credit history, this may not be an option for you. To be eligible you must have a beacon score of 650 or higher. Also, this option will usually carry a premium charge of 1.5% or higher over traditional mortgages.
To see if you are eligible for this option,
speak to a qualified mortgage broker.
If you're a first time home buyer, these other great resources may be of use to you: Homes Oakville, Homes Oakville Ontario, Real Estate Oakville Ontario and Oakville Estates.
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