Find government perks for First-Time Home Buyers

Buying your first home is one of the most exciting milestones in life, but it can also be an overwhelming journey. The good news? If you’re a first-time homebuyer in Canada, several government programs are designed to make this process easier and more affordable. These perks are often overlooked or misunderstood, but they could save you thousands of dollars and help you achieve homeownership sooner than you think.

In this blog post, we'll explore the top government perks available for first-time home buyers in Canada—and why you shouldn’t miss out on these valuable opportunities.

1. Home Buyers' Plan:

Unlock Your RRSP for Your Down Payment As of August 1, 2024, you can now withdraw up to $60,000 from your Registered Retirement Savings Plan (RRSP) to fund your down payment with the Home Buyers' Plan (HBP). This increase, announced in the latest federal budget, allows first-time home buyers greater access to their retirement savings to help secure home purchases. If you're buying with a partner, you can withdraw from your RRSPs, allowing up to $120,000 in funds.

This is a significant advantage because you can now use your savings—typically locked away until retirement—toward your down payment. This more substantial withdrawal can help you avoid needing mortgage insurance and secure a better mortgage rate.

Keep in mind that this new limit is sometimes misunderstood, and not all banking professionals may be aware of the change, so be sure to contact your mortgage broker.

2. First-Time Home Buyers' Tax Credit:

Claim Money Back at Tax TimeThe First-Time Home Buyers’ Tax Credit provides a non-refundable $5,000 tax credit when you purchase your first home. While it may not cover a significant portion of your home-buying expenses, the savings at tax time can go a long way toward reducing closing costs or covering moving expenses.

Why pass this up? It's essentially free Money just for being a first-time buyer!

3. GST/HST New Housing Rebate:

Get a Refund on Taxes PaidIf you’re buying a newly built home or substantially renovating an existing one, you may be eligible for the GST/HST New Housing Rebate. This program allows you to recover a portion of the Goods and Services Tax (GST) or Harmonized Sales Tax (HST) you paid as part of the purchase price.

This rebate can often return thousands of dollars to your pocket—Money you can use for furniture, renovations, or future investments.

4. Land Transfer Tax Rebates:

Save Big When You Close the DealOne of the most significant hidden costs of buying a home is land transfer tax, which can range into thousands of dollars depending on where you're buying. Fortunately, first-time homebuyers in certain provinces—like Ontario, British Columbia, and Prince Edward Island—can benefit from Land Transfer Tax Rebates. In Ontario, for example, you can get a rebate of up to $4,000 on your land transfer tax.

Why should this matter to you? Land transfer taxes can be a surprise cost, but using this rebate can cushion the blow and make the home-buying process smoother.

Why You Should Act Now?

These governments have designed perks to help you make the most of your first home purchase, but they aren't always well-publicized. By taking advantage of the benefits available, you can save Money, reduce financial stress, and build equity sooner. Plus, with the current market conditions, now might be the perfect time to move.

Interested in learning more? Contact me today, and I'll help you navigate these programs, ensuring you unlock every possible benefit on your path to homeownership.