4 FIRST TIME HOME BUYERS PROGRAMS FOR BUYERS IN HAMILTON
There are 4 great programs (government programs) that first time home buyers can take advantage of. At Robert Floris’s Mortgage Architects in Hamilton we try to teach as if we were learning for the first time. In today’s market we have the addition of record low mortgage rates which certainly does not hurt if you are considering your first home.
Each government program is different so we hope that each plan is carefully scrutinized and studied. These programs do help save money for your biggest purchase of your life.
FIVE PERCENT DOWN PAYMENT PROGRAM
Saving for a down payment is not easy. First-time home buyers can get in their first home with as little as 5% of the purchase price. Approval is based upon qualifying with the five year fixed rate. Other stipulations include:
– proof of savings for the closing costs of 1.5% of the purchase price;
– Homes must be owner-occupied;
– More down payment will be required if price of home exceeds $500,000;
– Amortizations cannot exceed 25 years.
A great website to review for more details can be found at:
HBP (HOME BUYERS PLAN)
Also known as the RRSP Home Buyers Plan, individuals are allowed to withdraw up to $25,000 tax free to buy their first home. Couples can take up to $50,000. The one catch is that you must repay the money back into your RRSP within 15 years. Under this program you could never have been a home owner in the previous 5 years.
More detailed information can be found at: www.cra-arc.gc.ca/hbp/
LAND TRANSFER TAX REBATES
Being a first time home buyer allows you to save on your land transfer tax. Home buyers in Ontario are obligated to pay the tax when they purchase a home. In fact buyers in the (GTA) Toronto are to pay double the transfer tax. If you’re buying your first home, the provincial government will rebate up to $2000 back. Just let your solicitor know it’s your first home.
More information can be found at: www.fin.gov.on.ca/en/refund/newhome/
HST NEW HOUSING REBATE
If you are considering purchasing a newly constructed home, you may be eligible for a rebate of your HST.
The Ontario HST rebate is frequently assigned to the vendor upon closing who consequently lowers the purchase price by the rebate amount. This allows the home builder/developer to advertise a lower price. It enables a buyer to qualify for a mortgage easier.
The rebate can only be applied for by the buyer after closing and never by the vendor. Calculation of the rebate can be found at: www.moneysense.ca/property/new-home-gst-rebate/
Any further questions can be directed by contacting our Hamilton Mortgage Architects office.