First Time Buyers

First time home buyer? We can help with a minimum of 5% down payment from savings, borrowed funds, gift from family or RRSPs. We are here to answer all your questions and provide as much information as possible on all of the mortgage intricacies and options. It’s not just about rate! It’s about the flexibility each mortgage can offer.

Click here to obtain further details surrounding the qualification for your first purchase!

First Time Home Buyers 30-Year Amortization

Effective December 15, 2024 first-time home buyers are now allowed to purchase any property with less than 20% down payment with a 30-year amortization. The criteria are:

  • Insured loans only between 80.01-95% loan to value (LTV)

  • Applications after December 15, 2024

  • At least one borrower has to be a first-time home buyer as below:

    • The borrower has never purchased a home before; or

    • In the last 4 years, the borrower has not occupied a home as a principal place of residence that either they themselves or their current spouse or common-law partner owned; or

    • The borrower recently experienced the breakdown of a marriage or common-law partnership.

  • At least one borrower must occupy the property as their primary residence

  • Eligible properties:

    • Available for 1 – 4 Units

    • Owner Occupied or Partially Owner Occupied

    • Newly built homes, resale homes and condos ONLY

  • Insurer Premium – surcharge of 0.20% applicable to loans where amortization is >25 years

  • Eligible loan type – Purchase, Purchase Plus Improvement, Port/Replacement

  • Ineligible loan type – Small Rental and Secondary Home Programs

Homebuyers Plan (HBP)

The Home Buyers' Plan (HBP) is a program that allows you to withdraw from your registered retirement savings plans (RRSPs) to buy or build a qualifying home for yourself or for a related person with a disability. With the Home Buyers’ Plan you can withdraw up to $60,000, tax-free, from your Registered Retirement Savings Plan (RRSP). You must use this amount to buy or build a qualifying home. The Home Buyers’ Plan isn’t just for buying your first home, it can also be used if there is a martial breakdown and you are looking to buy a new home for yourself.

Please keep in mind that:

  • You have up to 15 years to repay the amounts you withdraw.

  • Not making the repayments could end up costing you a lot of money in income tax.

  • The funds must be in your RRSP account for a minimum of 90 days before they can be withdrawn.

Check out the Government of Canada website to see if you are eligible: What is the Home Buyers' Plan (HBP)? - Canada.ca

First Home Savings Account (FHSA)

Starting April 1, 2023, first-time homebuyers will have a new savings tool to assist with saving for a down payment for their first home. The First Home Savings Account (FHSA) will offer prospective first-time home buyers with the ability to save up to $40,000 tax-free.

Stipulations:

  • Must be a first-time home buyer.

  • Must be at least 18 years old.

  • Must be a Canadian resident.

  • You or your spouse must not have owned a primary residence within 4 years.

  • You must occupy the home for at least 1 year following the purchase and withdrawal.

Contributions:

  • Maximum of $40,000 lifetime deposits.

  • Maximum of $8,000 annually.

  • You can contribute but defer a deduction until a year later.

  • Carry forward ability for future tax years.

  • Funds leftover after the withdrawal to be transferred into an RSP.

Withdrawals:

  • Not taxable

  • Must have an offer to purchase to buy or build by October 1 of the year following the withdrawal.

  • Can be made within 30 days of a qualifying home purchase.

  • You can transfer from an RSP to the FHSA.

  • You do not have to repay within 15 years like the Homebuyers Plan (RRSP Withdrawal).

*The FHSA can be used in conjunction with the Homebuyers Plan (HBP) for a maximum housing contribution of $75,000.

The Home Buyers’ Tax Credit

You can claim $10,000 for the purchase of a qualifying home in the year if both of the following apply:

  • You or your spouse or common-law partner acquired a qualifying home.

  • You didn’t live in another home owned by you or your spouse or common-law partner in the year of acquisition or in any of the four-preceding year.

Check out the Government of Canada website to see if your home qualifies: Line 31270 – Qualifying home - Canada.ca

Energy Efficient Rebate

The three mortgage insurers offer a premium refund of up to 25% when you buy or build an energy efficient home, or when you buy an existing home and make energy-saving renovations.

GST/HST New Housing Rebate

The GST/HST new housing rebate allows an individual to recover some of the GST or the federal part of the HST paid for a new or substantially renovated house that is for use as the individual's, or their relation's, primary place of residence, when all the other conditions are met:

  • Purchased a new or substantially renovated house from a builder.

  • Constructed or substantially renovated your own home (or hired out the construction or renovation).

  • The fair market value of the house on completion is less than $450,000.

For more information and to see if your home qualifies for the rebate check out the Government of Canada website: RC4028 GST/HST New Housing Rebate - Canada.ca