First time home buyers Canada have a lot to look forward to! The real estate market is stabilizing and Canada’s economy is looking pretty good. Interest rates are low, and there’s definitely more confidence among buyers and sellers right now. Add to this the incentives that the government is offering to first time home buyers and this could be a good time to buy your first home!
Buying Your First Home
The majority of first time home buyers in Canada are going to be at least a little bit frightened by the prospect of spending so much money. We’re guessing you've never paid several hundred thousand dollars for anything before, so you want to get it right! At the end of the day, it really doesn't matter if you’re buying your first home or your tenth, it will always be daunting when you sign on the dotted line and make that commitment, but it’s also a hugely exciting time in your life. Buying your first home may signify independence, or starting a new life with a spouse, or relocating for a new job. Whatever it is, we’re here to help you take the step and become a homeowner.
Is Home Ownership Right For You?
It’s a dream come true to own your own home but it’s a simple fact that home ownership is not for everyone. Before you make the decision to start the home buying process you should ask yourself a couple of questions:
How financially stable are you? Do you have the financial management skills necessary to own a home? Are you ready to take on the responsibility of home ownership including paying back your mortgage, paying for maintenance and repairs? And, can you devote the time necessary for the upkeep of the home?
If you believe you can do all of the above then you’re ready to start down the path to become one of the thousands of first time home buyers Canada!
The Cost of Buying a Home
Buying a home is never cheap. Obviously the property itself could cost several hundred thousand dollars, but that’s why you’ll need a mortgage. There are also many other costs involved in buying a home too and these extra costs are ones that many first time home buyers Canada forget to include.
Legal fees have to be paid as you need a lawyer or a notary to deal with the legal side of things. Then there are land transfer taxes – this is a big chunk of money that’s easily forgotten, plus there are property taxes to pay, and of course the cost of actually moving in.
Incentives and Tax Credits
Some of these extra costs can be offset. As we mentioned above, the government is offering several incentives to first time home buyers in Canada. These incentives are a way to help get the real estate market back into full swing again by giving first time home buyers offers that will help them to buy a home. The more first time home buyers who purchase homes at the lower end of the property ladder, the more mobile the whole market gets as there’s a knock-on effect.
Anyway, there’s the First Time Home Buyers Plan that allows you to take up to $25,000 out of your RRSP for a down payment and pay it back over a period of up to 15 years. And there’s the First Time Home Buyers Tax Credit that gives you up to $750 credit off your personal tax bill.
Also be sure to look out for provincial incentives, such as the Land Transfer Tax Refund for first time home buyers in Ontario.
We recommend all first time home buyers Canada visit the Canadian Mortgage and Housing Corporation website as there’s loads of useful information on there.
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The Rock Star Real Estate Team after a game of Trampoline Dodge Ball in Mississauga, Ontario.
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