First Time Home Buyer: Tax Credits, Rebates, Programs and Incentives.
Buying your first home can be exciting. There are several programs and incentives that can help turn dreams into reality.
Are you a First Time Home Buyer considering jumping into the housing market but are wondering what programs are out there to help you with your purchase? Fortunately, the Government of Canada along with the Government of British Columbia want to help and have a number of programs and incentives designed to do just that.
Buying your first home is a big step. There are many financial things to consider like the recently introduced mortgage stress test, your down payment, interest rates, amortization periods and much more. For this and other important information, it’s best to get in touch with a Mortgage Broker.
Let’s take a look at some of the more common programs out there:
Government of Canada
First Time Home Buyers Tax Credit (FTHB): Plain and simple, this is a $5,000 non-refundable tax credit which could provide you with up to $750 in federal tax relief.
Home Buyers Plan (HBP): This program allows you a $25,000 RRSP withdrawal per calendar year tp build or buy a qualifying home.
GST New Housing Rebate: Under this program, you may be eligible for a partial GST/HST rebate on the purchase, construction or substantial renovation of your new home.
Check out the CHMC’s website for more detailed information on the latest programs available to First time Home Buyers and keep an eye out for updates as they become available.
Government of Canada First Time Homebuyer Programs
Changes Coming: For 2019 the federal government has also proposed changes as part of the 2019 Federal Budget. The proposal introduced a new CHMC First Time Home Buyer Incentive which would allow first time home buyers to finance a portion of their home through a CHMC shared equity mortgage (please note that the terms and conditions have yet to be released by the CHMC). Also included in the budget was proposed an increase to Home Buyers Plan withdrawal limits from $25,000 to $35,000.
2019 Federal Budget Housing Proposals
Government of BC
First Time Home Buyers’ Program: This program could help reduce or even eliminate the amount of property transfer tax you would pay on your first home. For more information on the program and other possible reductions like the New Built Home Exemption please visit their website.
Deciding to buy your first home can be a daunting exercise. Hopefully these government programs along with advice from a licensed mortgage broker can help make your move a whole lot easier. Feel free to share this article and good luck!