Programs for first-time homebuyers make starting your journey toward homeownership a little easier. Besides being an exciting once-in-a-lifetime event, buying your first home can qualify you for a few special “first time only” government programs to help you enter the homeownership market:
- Tax-free first home saving account: When you start saving up your down payment besides RRSPs, there is a tax-free option.
- RRSP loan for your down payment; you may use funds from your RRSPs without a tax penalty.
- First-time buyer’s interest-free shared equity loans: You may qualify for a portion of your mortgage with an interest-free government loan.
- Property transfer tax exemption: If you’re purchasing a primary residence(a home you will be living in yourself), you can get an exemption from the government purchase tax if your purchase is below the allowable maximum exemption price.
- First-time home buyer’s tax credit: You may qualify for an income tax credit in the first year you become a property owner.
- New construction GST and transfer tax rebate: You don’t need to be a first-time home buyer to take advantage of these rebates for newly built homes, but they can still be useful.
These programs for first time homebuyers are only available for a single one-time use so if you can you take advantage of them now. Because you’ll only ever be a first time homebuyer once.
