Buying a home can be an intimidating experience, especially for first-time buyers. But with the right information and assistance, it doesn’t have to be. Across Canada, first-time homebuyer programs offer incentives to help make the process easier.
For starters, the Canada Mortgage and Housing Corporation (CMHC) offers a variety of loan insurance plans that make it easier for first-time buyers to get a mortgage. These include the Home Buyers’ Plan (HBP), which allows buyers to withdraw up to $25,000 from their registered retirement savings plan (RRSP) to purchase a home.
In addition, the CMHC also offers a First-Time Home Buyer Incentive (FTHBI) that provides eligible buyers with 10% of the purchase price for a newly-built home, or 5% for a resale home. The incentive is available to households with an annual income of $120,000 or less, and a maximum purchase price of $500,000.
On top of the CMHC’s incentives, several provincial and territorial governments also offer first-time homebuyer programs. In Alberta, for example, the Alberta Home Ownership Program offers down payment assistance and other financial incentives to qualified buyers.
Similarly, the province of British Columbia operates the BC Home Owner Mortgage and Equity Partnership, which provides up to $37,500 in a interest-free loan to help with down payments. Other provinces and territories offer similar programs.
In addition, many Canadian cities and towns offer their own first-time home buyer incentives. For example, the City of Toronto offers a Land Transfer Tax Rebate Program, which provides a rebate of up to $4,000 on the purchase of a new home.
Ultimately, it’s important for first-time buyers to do their research and find out what programs are available in their area. With the right information and assistance, buying a home can be a rewarding experience.