Ready to buy your first home?
If you are ready to take the leap into home ownership for the first time, the steps involved are the same for anyone else looking to buy a home. The good news is you will get some extra advantages when its comes to tax rebates and your down payment! If you want to find out more about the 5 Steps to Buying a House, click the button below, or keep reading to find what advantages you have as a first time home buyer!
Tax Credit
The Home Buyers’ Tax Credit, at current taxation rates, works out to a rebate of $750 for all first-time buyers. After you buy your first home, the credit must be claimed within the year of purchase. If you plan on purchasing a home with a partner, the combined claim cannot exceed $750.
RRSP Plan
As a first time home buyer you are able to borrow up to $25,000, tax free, from your Registered Retirement Savings Plan (RRSP). If you’re purchasing with someone who is also a first time homebuyer, you can both borrow $25,000 from your RRSP for a total of $50,000. However, since this is considered a loan, it must be repaid within 15 years.
5% Down
As a first time home buyer you will only need to put 5% down for your down payment as long as the purchase price of your home is under $500,000! However, all mortgages with less than 20% will require CMHC Insurance (Mortgage Default Insurance). This insurance is calculated as a percent of the total mortgage value. If your down payment is between 5% – 9.99% your insurance will be 3.6% of the mortgage amount, 10% – 14.99% will be 2.4%, and 15% – 19.99% will be 1.8%.
Realtors
A question I get from many first time home buyers is “How much are you going to charge us?” and I have good news, NOTHING. The agent who has the property listed will pay the buyer’s agent’s fee! Ultimately, as a first time home buyer, working with a Realtor will be the best decision you make! Along the way you will have many questions and I will be available 24/7 to answer!
If you want to know what is for sale right now, just click the button below to choose an area and get the list!
