Are you in the market for a First Time Homebuyer Mortgage? A First Time Homebuyers Mortgage has its advantages. The government offers you programs to assist you in making the process easier as well as more affordable.
Homebuyers Plan
The Homebuyers Plan will allow a First Time Home-buyer to borrow up to $25,000 from your RRSP for a down payment. Furthermore, your withdrawal is tax-free, however, must be paid back within a specific period to avoid paying the taxes. If you are purchasing with another individual who is also a first-time homebuyer, you can each borrow from your RRSPs for a total of $50,000.
For more specific details, contact me or qualifying guidelines can be reviewed at Revenue Canada.
Property Transfer Tax Exemption
In BC, property transfer tax is payable when a property is purchased. In addition. as a first-time homebuyer, you are eligible for an exemption up to a purchase price of $500,000. It is calculated at 1% on the first $200,000, 2% of the purchase price over $200,000 and 3% on the purchase price over $2,000,000.
For more specific details on a First Time Homebuyers Mortgage, contact me or qualifying guidelines can be reviewed at Government of Canada Taxation Department.
30 Year Mortgages for First-Time Buyers of New Builds
In Budget 2024, the federal government announced it would amend mortgage rules to allow up to 30 year mortgages for first-time homebuyers purchasing new builds.
Starting August 1, 2024, the strengthened Canadian Mortgage Charter will help more Canadians unlock the door to their first home by allowing first-time buyers of newly built homes to have an additional five years to pay off their mortgage, resulting in lower monthly payments. This is about restoring generational fairness to the housing market for younger Canadians. For more specific details guidelines can be reviewed at First-Time Buyers of New Builds