What programs are available for First Time Home Buyers?
Purchasing your first home can be a daunting task, but fortunately, there are many first-time home buyer programs in Canada that can help make the process easier and more affordable. These programs offer a variety of benefits, such as financial assistance, tax credits, and low-interest loans. In this blog post, we will outline all of the first-time home buyer programs in Canada.
The Home Buyers' Plan (HBP) is a program that allows first-time home buyers to withdraw up to $60,000 from their Registered Retirement Savings Plan (RRSP) to use towards the purchase of a home. The funds must be repaid within 15 years and there are no penalties or taxes on the withdrawal as long as it is repaid on time. This was increased from $35,000 to $60,000 in April 2024.
The First-Time Home Buyer Incentive (FTHBI) program was a shared equity program that was discontinued in March of 2024. If you have a mortgage that used the FTHBI and you have questions about this, please reach out directly to the mortgage broker that originated the file for you.
The First-Time Home Buyer Tax Credit (HBTC) is a tax credit of up to $750 available to first-time home buyers to help offset the costs associated with purchasing a home. The credit is nonrefundable and can only be claimed in the year of purchase. *The 2022 budget proposed that the First-Time Home Buyer Tax Credit be increased to $1500 in 2023 and subsequent years. Be sure to follow along for updates.
The GST/HST New Housing Rebate program provides eligible first-time home buyers with a rebate on the GST/HST paid on a new or substantially renovated home. The rebate is based on the purchase price of the home, and the maximum rebate is $6,300. To be eligible for this program, either you or your immediate family must occupy the home at possession, and the purchase price of the new cannot exceed $450,000.
The CMHC Green Home Program provides eligible first-time home buyers with a premium refund of up to 25% if they purchase a home that is energy-efficient and has a high level of sustainability. The program also offers a free energy assessment of the home. Sagan and Canada Guarantee also offer Green programs.
In 2022, the Government of Canada created a new type of savings account specifically for first-time home buyers. It’s called the First Home Buyer’s Savings Account or FHSA. The FHSA is a tax-free way for Canadians to save up to $40,000 ($8,000 per year for 5 years) to buy their first home.
Many first-time home buyer programs in Canada can help make purchasing your first home more affordable and accessible. From financial assistance to tax credits and low-interest loans, these programs offer a variety of benefits that can help you achieve your dream of homeownership. Be sure to research all of the available programs and consult with a mortgage professional to determine which ones are right for your unique situation.
